The age limit changes mean that a retired customer who has an income from something other than employment, such as rental and pension gains, will no longer be restricted from buy-to-let borrowing at any age if affordability can be satisfied. Previously an age limit of 80 applied.
Together sales director Gary Bailey said the change has been made in line with the lender’s policy of “commonsense lending”.
“For some customers, buy to lets are likely to form part of their income in retirement, or their chosen form of long-term investment,” said Bailey.
“If the customer can show they have the means to afford the loan for a buy-to-let property, then their age shouldn’t be a barrier, and as a leading specialist lender, we want to ensure we can offer finance to this segment of the market.”
Together has also made changes to the amount that can be borrowed without the need for a referral, doubling it from £200,000 to £400,000, where applications meet the lending criteria. The changes apply only to first charge buy-to-let products.
“In terms of the new loan size; this will help ensure customers have access to loan amounts that reflect the property market,” said Bailey.
“We believe that we’ll see an increase in applications for larger loan sizes as a result. Together has been at the forefront of supporting property investors borrowing against lower and average size property values for over four decades.”
He said the rise in loan size will also support investors looking to borrow against higher value properties, with potential to gain higher rental incomes.