Retirement Advantage has reduced rates and increased LTV ratios across its range of buy-to-let products for older landlords.
This range, launched last year, allow landlords aged 55 and over to release cash – tax-free – from their buy-to-let properties, without having to sell their investments.
The monthly interest rate on its over-55 buy-to-let lifestyle product is reduced from 6.26 per cent to 5.99 per cent.
At the same time the LTV for a 73-year old increases from 27 to 32 per cent.
On its over 55 buy-to-let voluntary select product the monthly interest rate has been cut from 6.45 per cent to 6.18 per cent. The LTV has been increased by the same margin.
Retirement Advantage has also announced enhancements to its second home options range. These are lifetime mortgage secured against a second property.
Here, the interest rate on its ‘lifestyle’ product has been cut from 6.26 per cent to 5.99 per cent, while its voluntary select product has been cut from 6.45 per cent to 6.18 per cent. LTVs have again been increased from 27 per cent to 32 per cent ( for a 73-year old) enabling them to borrow a greater percentage of the property’s value.
Retirement Advantage’s head of product marketing Alice Watson says that there has been significant demand from advisers since the launch of these products last year.
She adds: “At a time when the buy-to-let market faces challenging conditions and many older people find it difficult to access mainstream mortgages these products offer older landlords a new and safe way to generate income.”
On the lifestyle mortgage range there is no interest to pay on the money released. This is rolled up and the total debt repaid when the property is sold.
On the voluntary select mortgage landlords can pay back up to 10 per cent of the initial loan amount each year without paying an early redemption charge.