Mortgage for over 65s

jackieblue

My mum owns her own house outright. She also owns outright a flat which she lets out.

The two together probably just fall under the IHT limits.

She could really do with some extra cash which she could save from the rent on the flat she lets out. Some of the cash she wants for herself and some she would like to be able to give her grandsons who are both at uni (not my children).

She was wondering if she could get a mortgage on the BTL flat. It seems silly not to as at the moment she pays tax on all the rent. She is 70 and would be looking at interest only. She has already been advised she can't do equity release on the flat because that's only for the property you live in. Also it doesn't make sense to us to raise the cash on her own home for which she would get no relief.

What do you think are the chances of getting an Interest Only BTL mortgage ?

Many thanks.

HelpWhereIcan

Arranging a Buy to Let mortgage should be possible depending on the amount she needs, the value of the property and how much rent it generates as an income.

Make sure your mum speaks with an inheritence tax specialist so she is aware of the effects that future increases in the value of the properties could have on her estate's liability and the 'gifts' she will be making to her grandchildren.

Should be possible, but she will need to be aware of all options and consequences and should therefore get advice from a firm that can access bot mortgage and IHT planning.

Hope this helps