Banks target over-55s with cheaper loans on buy-to-let

padington

Question is, where will the over 55's seek to buy ? I reckon they will play it safe, more Mayfair than old Kent road.

When you're young you don't mind buying into a !!!!!! hole but when you're older I think you may be more keen that the area is vaguely safe and close by.

If so, we'll see the better places enjoy the gains on this one.

stator

Selfish, greedy, deplorable. Buy to let mortgages should be banned.

wotsthat

Graham_Devon wrote: »

In truth, I know one person who aims to buy 3 with his pension. He doesn't have any at the moment (BTL's that is) but he's actively right now looking into it very seriously. His aim is to buy the place and hand it over to a management company and simply let the money come in. He doesn't want to "run a business" in retirement.

He reckons its better than any return his pension could ever give.

If they're cashing in a pension to do this and having to pay income tax to generate the funding can you say thank you from me?

We should treasure stupid people who do things like this especially those wealthy enough not to end up begging for benefits from the taxpayer at a later date.

purch

Unless this can be funded entirely out of the 25% TAX FREE portion of the pension fund, then I cannot for the life of me see how this would stack up as a business proposition.

On the other hand most BTL people I have encountered don't have a business proposition at all anyway, so probably there will be many silly enough to withdraw taxable funds from their pension to do this.

On yet another hand, as the average pension pot subject to the new freedoms is so small I doubt whether too many will even be able to do so even if they withdrew their entire pot, so it is all a big fuss about not a lot (as usual)

ukcarper

According to ABI the median pot size to purchase an annuity was £25,600 in 2014

.https://www.abi.org.uk/~/media/Files/Documents/Publications/Public/2014/Pensions/ABI%20statistics%20Q2%202014%20The%20UK%20retirement%20income%20market%20post%20Budget.pdf

wotsthat

ukcarper wrote: »

According to ABI the median pot size to purchase an annuity was £25,600 in 2014

.https://www.abi.org.uk/~/media/Files/Documents/Publications/Public/2014/Pensions/ABI%20statistics%20Q2%202014%20The%20UK%20retirement%20income%20market%20post%20Budget.pdf

Not much left over to buy a BTL after buying the Lamborghini.

mwpt

Can someone link a BTL product with a 1.95% rate?

mwpt

Oh sorry, just seen one on natwest. 2 year tracker, 60% LTV, £2000 arrangement fee. Seems like a honeytrap.

ruggedtoast

Another flood of amateur landlords buying up property that should be going to first time buyers.

At some point renters are going to be forced to collectivise, presumably. But then again apparently no one ever lost money by overestimating the capacity for the British public to vote against their own interests because The Sun and The Mail tells them to because Muslims.

There are 8 million private and social renters in the UK. People for whose interests the Tory Party is diametrically opposed. Yet only 9 million people voted for Labour.

Anyone renting who either voted Tory or didn't bother to vote has only themselves to blame.

I wash my hands of them. They deserve to receive a triple shafting from the Boomers. At least the Boomers are apparently capable of knowing what side their bread is buttered.

What is wrong with this country?

purch

ruggedtoast wrote: »

What is wrong with this country?

Too many people who think moaning and whinging will make up for their own inadequacies.