The Property Ombudsman

Pension changes cause buy to let boom

The number of buy to let mortgages on the market has reached over 1,000 for the first time in seven years.

Older landlords investing in property for their retirement are thought to be the main driving force behind the increase in mortgages products, as banks are now able to offer deals to a whole new demographic. This is the first time since April 2008 that there have been such a high number of buy to let mortgages on the market.

The pension freedoms that were introduced in April this year gave everyone over the age of 55 complete access to their pension. As a result, many of those approaching retirement have chosen to withdraw their pensions to invest in property to achieve better returns. Banks and lenders have now increased the number of buy to let mortgages in order to keep up with demand.

Earlier this year, it was reported that a total of £1 billion had already been withdrawn from savings across the UK, with 60,000 people thought to have already taken advantage of the new rules surrounding pensions.

Comments from Sequre

Graham Davidson, Managing Director of Sequre Property Investment, comments on the increase in buy to let mortgage products:

“As expected, the pension changes have sparked a boom in the buy to let market. Those over the age of 55 are now entitled to full access to their pensions and are utilising it by putting their capital into property. The ability to take liquid cash from a poor performing pension and invest it into something tangible that benefits from high returns and capital growth is something that obviously appeals to the majority of individuals.”

“While the increase in the number of buy to let mortgage products available has been led by those using their pensions to invest, it’s also beneficial to first time investors and more experienced investors. A variety of deals on the market will give landlords much more choice when choosing their mortgage product, regardless of whether they’re expanding their portfolio or simply refinancing existing property.”

Property offers the best returns for your retirement. If you're considering investing your pension into property, contact Sequre today. As well as specialising in sourcing exclusive, off-market property deals, we can recommend mortgage brokers to investors considering their financial options. We work with experts in the buy to let market who can guide you through the lending process, whether you own one property or one hundred. Call us on 0800 011 2277 to find out more.  

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