The Mortgage Works (TMW) is to remove upper age limits at term maturity on its Buy to Let (BTL) mortgages.  Adopting a more progressive approach, it will instead introduce a maximum age (at application) age 70; acknowledging that many people wish to use BTL as a source of income throughout their retirement.

Independent research from BDRC shows that three quarters (75%) of landlords view their property as their pension. Yet the standard industry approach does not support this, because it often requires older landlords to sell their property, in order to repay their mortgage at term maturity, with potential implications on their income, capital appreciation and tax.

Henry Jordan, Managing Director of TMW said; “We are aware that a significant proportion of landlords intend to use their buy to let property as a form of retirement provision. We believe these changes provide an innovative and practical solution that allows us to responsibly support those aspirations.

“Using BTL as a long term investment is growing in popularity amongst people who want to maintain their options and potential sources of income into retirement – and the recent Budget announcements could see even more considering BTL as an option for their retirement savings. Our removal of upper age limits at maturity will ensure our customers are offered greater choice and flexibility around the point at which they might sell their property; providing increased peace of mind for their tenants, as well as supporting stability in the wider market.”