"Increasing numbers of older people are recognising the potential of buy-to-let investments."
The buy-to-let broker saw borrowers aged between 65 and 75 increase their share of buy-to-let applications by 5.43% in 2018, compared to just a 0.03% rise for 25-34 year olds.
Commercial Trust reported a 4% increase in the proportion of buy-to-let purchases and remortgages from over 55s, who now account for 39% of all buy-to-let activity.
For purchase only applications, over 55s were responsible for 29.7% of all business in 2018, an annual increase of 8%.
The trend for more older buy-to-let mortgage applicants has been recognised by a number of lenders, who have increased the maximum age permitted at both application and at the end of the mortgage term.
Santander recently increased their maximum age at the end of the mortgage term criteria from 75 to 85 years old and the maximum mortgage term on its buy-to-let range from 25 years to 40 years.
Precise has a maximum application age of 80 on a maximum term of 35 years, while The Mortgage Works sets no maximum age at term end for experienced landlords.
Andrew Turner, chief executive at Commercial Trust, said: “Our look at the age demographics for 2018 buy-to-let mortgage activity, suggests that increasing numbers of older people are recognising the potential of buy-to-let investments.
“Our data indicates that many people reaching retirement are choosing to invest in bricks and mortar and the rental market as a means to fund their retirement years.
“Investing in property has the potential to deliver attractive rental yields and achieve capital growth, despite industry changes. I fully expect that the returns fair better than many other forms of investment.”
