Retirement Advantage cuts rates to its buy-to-let product range for older landlords
Retirement income provider Retirement Advantage has reduced interest rates and raised LTVs across its over buy-to-let range.
This follows positive feedback after last year launching its over 55 buy-to-let options range to allow landlords over the age of 55 to release cash from their property tax free, leaving their entire portfolio intact.
The monthly interest rate on the over 55 buy-to-let lifestyle product has been reduced from 6.26% to 5.99%, while the LTV for a 73-year-old has been raised from 27% to 32%.
Alice Watson, head of product and marketing at Retirement Advantage, said: “The reaction to these products since we launched them last year has been overwhelming.
“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.
“That may be to support day-to-day living expenses, fund a major expenditure, gift to family, or pay for care.
“But our ethos is built on a desire to innovate and we are always looking for ways to improve our products even further. We have listened to advisers and to customers and we’re confident these enhancements will make this unique product range an even more attractive proposition.”
On the over 55 buy-to-let voluntary select product, the monthly interest rate has been cut from 6.45% to 6.18% while the LTV for a 73-year-old has also increased from 27% to 32%.
With the over 55 buy-to-let lifestyle product, there are no interest payments; instead, the interest rolls up and is added onto the mortgage every month,
The over 55 buy-to-let voluntary select mortgage allows landlords to pay back up to 10% of the initial loan amount each year, without being charged an early repayment charge. This means they can choose how much interest to pay, and to pay back some capital each year too.
At the same time, Retirement Advantage also made reductions to its second home options range. Unlike most lifetime mortgages, these are secured solely against homeowners’ second homes.
The monthly interest rate on the second home lifestyle product has been reduced from 6.26% to 5.99%, while the LTV for a 73-year-old has increased from 27% to 32%.
On the second home voluntary select product, the monthly interest rates has been reduced from 6.45% to 6.18% while the LTV for a 73-year-old was also raised from 27% to 32%.