Delays to Pension Reforms? Use the Extra Time to Research B2L

Limetree Financial Services Limited

Delays to Pension Reforms? Use the Extra Time to Research B2L

Changes to pensions are due in just five weeks’ time. But despite being announced a year ago, it seems that many insurers aren’t going to be ready in April, potentially delaying over-55s dipping into their pensions. Some providers are apparently not setting up new schemes at all.

This could be frustrating. Especially if you plan to use your pension pot to invest in B2L – a good alternative to investing money in shares that remain volatile, investments that are risky and falling annuity rates. Understandably, you would probably prefer to push on with plans than wait for the industry to sort itself out.

If you think you’re going to be affected by possible delays, I suggest using the time to make sure you know the B2L market well before taking the step to being a first-time landlord.

  • Falling rates – Keep a close eye on rates. B2L mortgage lenders are following in the footsteps of residential lenders, which have recently been slashing rates. A record low of 3.82% on a B2L mortgage was recorded by Moneyfacts recently. Plus, lenders are also beginning to accept smaller deposits.
  • Get covered – We suggest using your time to look into landlord and B2L insurance. Whether you’re thinking of buying one property or a few, insurance is there to protect the building, its contents, your tenants and you – the landlord. It’s essential to you maintaining an income and preserving your investment.

If pension reforms arrive later than planned, at least you’ll be ready to roll when the money becomes available. To find the best B2L mortgage deals and insurance policies, give us a call.

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