Pensioners are being offered mortgages that will only be paid off when they are 105 . Nationwide Building Society is giving anyone up to the age of 70 the chance to take out a 35-year loan – stoking fears of a buy-to-let boom . The offer comes as pension reforms give over-55s access to billions of pounds from today to withdraw from their pension pots and spend as they like . Tens of thousands of savers are being tempted to put their money into property – and this surge of ‘ silver landlords ’ is likely to push up house prices . Nationwide Building Society is giving anyone up to the age of 70 the chance to take out a 35-year loan , meaning some pensioners are being offered mortgages that will only be paid off when they are 105 ( file picture , posed ) Traditionally , banks have been reluctant to allow borrowing beyond retirement , but now other lenders are considering raising their age limits too . Savers who want to put their money towards buy-to-let properties are unlikely to be able to afford to purchase a house outright , with the average price standing at £273,000 . The option of taking out a mortgage to cover the shortfall has previously been unavailable as banks prefer people to repay before turning 70 or 75 . But unlike residential mortgages , funded by income likely to fall away in retirement , a buy-to-let mortgage is funded by rental income , which does not cease when the owner retires . Economists say the increase in silver landlords competing to buy properties is boosting house prices , which are increasing at 8.4 per cent a year . Three in four of Britain ’ s 2million landlords regard their property as their pension , according to research from financial consultancy BDRC . About one in five homes in Britain are owned by private landlords , and this is expected to rise to one in three by 2032 , Government figures suggest . But there are perils too . The buy-to-let boom expected to follow today ’ s changes could have painful tax consequences for some , experts warn . Withdrawing large sums from a pension pot will trigger a hefty income tax bill – for example , taking out £150,000 will produce a £40,000 demand from HMRC . Buy-to-let homes also attract tax on rental income and capital gains tax if the property is later sold . And for ageing landlords , there is inheritance tax to consider too . Tens of thousands of savers who have had their pension released under today 's new reforms are being tempted to put their money into property – and this surge of ‘ silver landlords ’ is likely to push up house prices . Jane Vass of Age UK said : ‘ Although Age UK believes affordability not age should determine whether someone is given a loan , using your pension fund to pay the deposit could have significant tax and financial consequences and if there is a downturn in the rental market you could find your own financial security is jeopardised. ’ Nationwide decided soon after the pension reforms were announced in 2014 that it would consider applicants aged up to 70 for a 35-year loan . The firm said it had recognised that buy-to-let was becoming a more popular source of retirement income as reports suggest half a million savers could plough pension pots into buy-to-let properties after the reforms take effect today . Experts have also warned of the difficulty of taking on a landlords ’ responsibilities . Financial strategist Penny O ’ Nions said : ‘ A lot of people will buy houses with their pension funds with no idea of the repercussions . ‘ There may be excellent advantages but the downsides are that many of them will not appreciate that the management of a property can be harsh . When you are aged 104 , do you really want to be managing a property ? ‘ Difficult tenants feigning problems with the property , periods when the property is empty , council tenants not paying – there is a long list . People should not go into it without good advice. ’ If a person with a mortgage that lasts until they are 105 dies before paying off the loan , the usual rules apply : their estate , or whoever inherits the property , would either take on the debt or the house would be sold to pay off the mortgage . However , it is cheaper for young people to obtain life cover to pay off the mortgage if they die early .
seniors are being offered mortgages that can be paid off at age of 70 . this is offering anyone up to 70 the chance to take out a mortgage loan . Tempting for over-55s with loans released under reforms to buy houses .