Pension windfall may lead to a buy to let boom.
It is predicted that the pension reform announced in last week's budget could trigger a surge in demand for buy to let property.
From April 2015 it will be possible for individuals of 55 years and above to withdraw their entire pension pot. The first 25% withdrawn will be tax free, any additional amount will be taxed at the individual's marginal rate.
It is thought that many who choose to withdraw their pension in this way may use the cash to purchase an investment property to provide an income into retirement.
However not every pension pot will be large enough to allow the outright purchase of a property. It is therefore anticipated that some investors may need to take on a buy to let mortgage to make their purchase possible.
If you do decide to take on a buy to let and need a mortgage you should compare all lenders products market-wide to find the best deal to make your property purchase as affordable as possible
If since hearing the pension reform news you have been considering a buy to let, Deal Direct can help you find a great mortgage.
* Before taking the decision to invest in property you are advised to seek impartial advice from an independent financial expert.
Note: Deal Direct are not authorised to offer investment advice, however we can provide mortgage advice and a 'whole of market' mortgage comparison.
Call 0800 048 8828 and speak to an adviser for a low rate quote.
