Could we get a mortgage - and should we?

beedeedee

Hi All, this is my first post on the MSE boards although I read all the tips as they arrive.
We are a married couple of 59 and 55 and long ago paid off our mortgage for this house. Husband took early retirement nearly 10 years ago and with my P/T salary we live ok and deliberately go out and enjoy life - the reason being that he has Leukaemia -is currently in remission hopefully for a few years yet!
We have a bit of money in the bank - but nowhere near enough to go out and buy another house, but the next door house is coming up for sale and we were wondering could we? should we? get some sort of mortgage, say to let this house out and use the rent to buy next door as well? Could we be better off financially? Thanks for your thoughts

herbiesjp

YOu may well be able to get a Buy to let mortgage and purchase the property next door - there are some pitfalls here, such as some lenders will not like the fact you are buying the property next door.

Have a word with a whole of market mortgage adviser and they should be able to help.

beedeedee

Thanks for your reply. I think we were wondering more about some sort of "Let to Buy" rather than "Buy to Let" mortgage. The house next door is also detached. Why are lenders not happy for someone to purchase a house next door? Its a bit bigger than our own.

herbiesjp

As you do not have a mortgage already on your current property you cannot do a let to buy

You can purchase the new property either via:

1) Re-mortgage of your property on a residential mortgage rate + savings to purchase the new property outright

2) Mortgage on a BTL basis the new property along with the necessary deposit funds to purchase the new house

Lenders do not normally like house next door if they are teracced or semi detached, as some people will knock through the walls and make one big property. THe fact it is detached should not make this an issue.

What figures are you looking at?

beedeedee

We could probably put down 25%, but please bear in mind our ages and the fact that husband has leukaemia. We live on his works pension and my P/T salary. I wouldn't think long term mortgages are a go-er, but am ever hopeful. We deliberately live well and enjoy our hard earned savings, but it is doubtful we will ever replace them, so we must be prudent and just thought that to buy another property might increase our income a bit with rental income.

MortgageMamma

It could well increase your income but you have to ask yourself do you really want to live next door to your tenants? what if they were knocking on your door mithering all the time? Also, the rental income may not exceed the mortgage by much, especially if the mortgage is over a short term. There are a lot of responisbilities and costs associated with being a landlord, buildings cover, home emergency cover/tradesman costs if boiler breaks down etc, security issues, non occupancy, tenants defaultng on rent, advertising costs. surely you dont want to open yourself up to all that at your age with a husband that could potentially become very poorly again?

In your shoes I would be selling up and downsizing and on every cruise, holiday and bit of pleasure imagineable as often as I could, not taking on more responsibility.

Good luck for the future whatever you choose

MM

beedeedee

I appreciate your reply - much food for thought there. Oh well, never mind. It was just a thought that I had to explore. Many thanks.

Mikeyorks

MortgageMamma wrote:

In your shoes I would be selling up and downsizing and on every cruise, holiday and bit of pleasure imagineable as often as I could, not taking on more responsibility.

Good luck for the future whatever you choose

MM

I think, for your stated circumstances, that's precisely the sort of advice (having done it last year - and without the prior ill - health) I would offer.

The risky potential of a 'late' (in life) mortgage allied to the possible hassle of an unfamiliar role handling tenants - I would suggest you do not need?