Updated: December 16, 2021

Buy-to-Let Mortgage Age Limits

Looking for a Buy-to-let mortgage but worried your age will be a barrier? Read our in-depth guide to find out everything you need to know.

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Pete Mugleston

Author: Pete Mugleston - Mortgage Expert

Updated: December 16, 2021

Whilst it can be harder to get a buy-to-let mortgage once you reach retirement age or only recently started in full-time employment, it is still possible. This guide will outline what the age limits are for these types of home loans and how you can still apply for one.

What are the maximum and minimum age limits for buy-to-let mortgages?

Age limits – both maximum and minimum – will vary from lender to lender. There’s a number of specialist lenders that have no upper age limits for when buy-to-let mortgages must be repaid, but some high street lenders do have them. NatWest, for example, has an upper age limit of 80, for Barclays it’s 74.

In terms of minimum age limits, this will also vary but the vast majority of lenders will consider applications from anyone over the age of 21 and some will take a look if you’re only 18.

Why do lenders impose age limits?

Age restrictions are put in place mainly for affordability purposes, rather than any issues with your status as either a retired person or being fresh out of university.

For older borrowers, lenders will want to be sure your retirement income is sufficient to cover any shortfall in monthly rental income. For younger applicants, the concern would be whether you have the experience and knowledge to manage a rental property.

Most lenders will simply be more cautious when assessing eligibility, particularly with stress testing the potential rental yield.

Can lenders offer buy-to-let mortgages for the over 80s?

Yes, some can. There are lenders who don’t impose any upper age limits so they would consider applications, regardless of age. Most likely they’ll be judged on a case-by-case basis and depend also upon the potential rental yield from the property.

A broker with experience of dealing with applications from retired people would certainly be able to add a lot of value here and save you time by identifying the specific lenders who they know can help.

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How to get a buy-to-let mortgage if you’re concerned about age limits

If you’re looking to get a buy-to-let mortgage but worried that your age may be an issue of concern, there’s a number of simple steps you can take that will boost your chances of success.

Step 1. Do your research and save for a deposit

For starters, it’s worthwhile investing some time into identifying what lenders’ requirements are and whether any specific age limits exist.

You can also research the type of property you want to buy within your price range. As this is for a rental property – do you know what yield you can expect? Have you spoken to any local letting agents in the area where you want to buy?

For your deposit, the higher amount you have, the more lenders’ will take an interest in your application and help quash any concerns they may have about your age and/or experience dealing with a rental property.

Deposit requirements will vary from lender to lender, but a good starting point for buy-to-let mortgages is usually between 20%-25%.

Step 2. Prepare your documents and credit reports

It’s important to have all the necessary documents prepared before you apply for a mortgage, these include three months bank statements, proof of address and proof of income.

We have prepared a full list of the documents you may need, which you can access in our guide to mortgage applications.

Another important part of the process is to check your credit reports, you should know your credit score and have the information ready prior to your application.

The benefit of doing this before your application is that if any issues arise, you can correct them quickly and avoid delaying your journey.

We offer a dedicated credit reports hub, which you can download your credit reports through.

Step 3. Speak to an experienced buy-to-let mortgage broker

Your next step is to speak with a mortgage broker who specialises in buy-to-let mortgages.

From this point on in your journey, your broker will help guide you through the process and keep you on the right track. They can provide insight into which lenders match your specific circumstances the best, identifying those who do not usually impose any age restrictions.

Our free, broker-matching service will quickly assess your needs and pair you with a mortgage advisor who’s ideally placed to help you – Make an enquiry to get started.

What is the eligibility criteria?

As you can see, age is not really seen as a barrier for most lenders, and from here the eligibility requirements are very much the same as a standard buy-to-let mortgage.

In order to improve eligibility, owning a residential home will help during your application as many lenders view it as a requirement in order to own a buy-to-let property.

Regardless of your age, the key factor all lenders will want to assess for buy-to-let mortgages will be how the rental yield compares versus the mortgage repayments. Most lenders will be happy if the yield sits anywhere between 125%-145%.

So, for every £100 monthly mortgage repayment, the rental return needs to be between £125-£145 and so on.

Other key eligibility requirements include having a good credit history, a strong deposit and a healthy amount of personal income (normally in excess of £25,000 per annum).

Get matched with a buy-to-let mortgage broker

Becoming a landlord and getting a buy-to-let mortgage, whether you’re at the high or low end of the age limits can be tricky but it’s far from impossible if you have the right help.

This is why the smart move to make, right from the start, is speaking to an experienced buy-to-let mortgage broker. Their insider knowledge of what lenders requirements are, particularly around age limits, could prove invaluable.

Call 0808 189 0463 or make an enquiry and we can arrange a free, no-obligation call with a buy to let mortgage broker with the right experience today.

FAQs

Could I use an equity release mortgage?

Yes, it’s possible if you’re above a certain age, 55 with most lenders. There are two primary ways equity release can help you in getting a buy-to-let mortgage.

Firstly, you could take an equity release mortgage on your own home and use the funds raised as a deposit for a buy-to-let property, as most lenders will accept this as a deposit source.

Alternatively, you could take an equity release buy-to-let mortgage against an investment property. With this, the arrangement is that the lender will sell the property once you pass away to recoup the funds, plus the rolled-up interest.

Ask us a question

We can help! We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in Buy-To-Let mortgages. Ask us a question and we'll get the best expert to help.

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Pete Mugleston

Pete Mugleston

Mortgage Expert

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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