Retirement Advantage has announced new enhancements to its range of mortgage products aimed at older landlords.
Last year, the retirement income provider launched its Over 55 Buy-to-Let Options range which allows older landlords to release cash from their property tax-free and leave their portfolio intact.
The firm is also reducing interest rates and increasing LTV (loan-to-value) ratios across the range.
The monthly interest rate (MER) on the Over 55 Buy-to-Let Lifestyle product is reduced from 6.26% to 5.99%, while the MER on the Over 55 Buy-to-Let Voluntary Select product is reduced from 6.45% to 6.18%.
At a time when the buy-to-let market faces challenging conditions, older people are finding it difficult to access mainstream mortgages, explained Alice Watson, head of product and marketing at Retirement Advantage.
“These products offer older landlords a new and safe way to generate income,” she said. “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.”
She added: “We have listened to advisers and to customers and we’re confidence these enhancements will make this unique product range an even more attractive proposition.”
With the Over 55 Buy-to-Let Lifestyle product, the interest rolls up and is added onto the mortgage every month, meaning landlord pay no interest payments.
Meanwhile, 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 an early repayment charge. This will enable them to choose how much interest to pay, as well as paying back some capital each year.
Retirement Advantage has also announced enhancements to its Second Home Options range, which are secured solely against homeowners’ second homes.
Similar to the Over 55 Buy-to-Let Lifestyle product, the MER on the Second Home Lifestyle product is reduced from 6.26% to 5.99%, while the MER on the Second Home Voluntary Select product is reduced from 6.45% to 6.18%.