Recent changes to the rules surrounding pensions have made it a lot easier for pensioners to access their pot of money. Previously, most people used their pension money to buy an annuity once they reached retirement age. Now pensioners are free to do whatever they like with their money: buy a Porsche, go on a round-the-world cruise, or invest in a buy to let property.<\/p>\n
Affordability Issues<\/strong> Kensington Survey<\/strong> According to a spokesman from Kensington: \u201cRaising a 25% deposit for a buy to let mortgage from pension funds will be tough as a look at average property prices across the country shows. Would-be landlords<\/a> will need to be realistic and it is worrying that so many are considering buy to let without knowing how to apply for a mortgage.\u201d<\/p>\n Many would-be landlords surveyed by Kensington were concerned about whether a buy to let investment property would generate enough income.<\/p>\n","protected":false},"excerpt":{"rendered":" Recent changes to the rules surrounding pensions have made it a lot easier for pensioners to access their pot of money. Previously, most people used their pension money to buy an annuity once they reached retirement age. Now pensioners are … Continue reading
\nHowever, just because pensioners are now free to invest in rental property, it doesn\u2019t mean they can afford to. One of the UK\u2019s leading provider\u2019s of buy to let mortgages<\/a> is claiming that the majority of pensioners won\u2019t have enough spare cash to put down an average deposit of \u00a343k.<\/p>\n
\nKensington Mortgages carried out a survey on 915 savers, which showed that 54% of respondents aged 40 and over would consider investing in buy to let, but with lenders requiring a minimum deposit of 25 per cent, many won\u2019t want to tie up their cash. Despite this, 28% don\u2019t know how to apply for a mortgage.<\/p>\n