There was a degree of scepticism in this weekend’s Financial Times over the predicted ‘Buy-to-Let Bonanza’ that could follow the recent pension reforms. Research suggests that only the top 7% could afford an outright purchase of an average property costing £180,000, and concerns over taxation are likely to prevent a rush to invest in property.
While some older borrowers might be considering entering the Buy-to-Let market, the Telegraph revealed that residential homeowners are still not being offered the same degree of flexibility, even with a secure income and a realistic idea of when they will retire – which in many cases will be after the age of 65. The Sunday Times reported on a recent case referred to the Ombudsman, which found a major high street bank guilty of unfairly rejecting a mortgage application on the grounds of age.
Elsewhere the Independent on Sunday highlighted a recent survey which revealed that 80% of 20-45 year olds feel that banks do not want to lend to new buyers.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE