Can't get mortgage due to age?

darkshadow54321

Hi everyone,

My parents want to buy a house in the UK. They'll need an international mortgage as they don't live in the UK.

The problem is that my dad is 67. I've spoken to London and Country who informed me that they can't find any international mortgage lenders without an age restriction of 70. That means the mortgage would have to be paid off within 3 years... which is impossible!

Apparently the lenders won't budge on this even though my parents have a house in the UK (currently rented out). My dad is currently working.

Does anyone know of any other options? I really appreciate the advice as we've found a place to buy but can't proceed due to this detail!!!

Note that the mortgage cannot be put in my name as I am not currently earning.

Thanks for the help!

Thrugelmir

Why buy a house when you have one already in this country?

Ok, so your Dad is 67 and working. Every year that passes the likelihood of this is gradually going to decrease. With a 25 year mortgage your father will need to live to 92 to repay it. Does he really need this committment at this stage of his life?

darkshadow54321

Well, it's an investment. I plan to contribute to the mortgage as soon as I get a job and the rental income from the current house would more or less cover the new mortgage. So the age issue is really a non-factor... but it's still getting in the way.

dopester

darkshadow54321 wrote: »

Well, it's an investment. I plan to contribute to the mortgage as soon as I get a job and the rental income from the current house would more or less cover the new mortgage. So the age issue is really a non-factor... but it's still getting in the way.

Geez. How about you get your job first? Pop is 67. He already has a home. There is a credit crunch on! Even for AAA+ borrowers in their prime, lending is tight. Step into the real world please.

darkshadow54321

I don't really see the problem. I appreciate your concern about my father's employment stability, but the point is that we can afford to buy right now and we have a 'backup' income in the form of the house rental income. The whole point is to take advantage of the lower house prices. If we don't act reasonably soon, house prices will go up too much and we won't be able to afford anything (12 months ago would have been ideal but you can still find some bargains if you look hard). So why not go for it? Not to mention the fact that I am 'wasting' money on rent that could be going towards a mortgage.

If it's not possible due to the tighter lending restrictions, that's fine. I can accept that. But I don't think the idea in itself is a bad one.

Nonetheless, looks like it's not getting much approval here. Thanks for the help anyway.

Fang_3

You can't afford it now at all.

Conrad

A couple of small boutique lenders would consider this if he's an experienced landlord.

Thrugelmir

darkshadow54321 wrote: »

the rental income from the current house would more or less cover the new mortgage.

And when the property is empty and there is no rental stream ?

The whole point is to take advantage of the lower house prices. If we don't act reasonably soon, house prices will go up too much and we won't be able to afford anything

Rule no 1 of business. Understand your market. Not just at local micro level but at macro level as well.

dopester

darkshadow54321 wrote: »

The whole point is to take advantage of the lower house prices. If we don't act reasonably soon, house prices will go up too much and we won't be able to afford anything (12 months ago would have been ideal but you can still find some bargains if you look hard). So why not go for it? Not to mention the fact that I am 'wasting' money on rent that could be going towards a mortgage.

If you can find a lender who'll give Pop, who lives permanently in a foreign country, already has one home in the UK he lets out, and who is 67 years old, a INTERNATIONAL BTL MORTGAGE.. then maybe you should go for it.

House prices only go up when people in the market have the ability to pay more for property than similar property in the area has sold for in previous months/years.

That process heavily relies on the supply of mortgage credit. For instance if Spanner-Bank thought you a good bet and extended Pop loads of money in order to buy. Higher prices paid also set new market values for surrounding properties where the owners did nothing... you helped push up the values of their property by paying the higher price.

Do you really think lenders are flush with money and happy to lend out ever more of it to push values up? I think you've got an education coming to you, along with many others. Hi Conrad.

Conrad

Thrugelmir wrote: »

And when the property is empty and there is no rental stream ?



Rule no 1 of business. Understand your market. Not just at local micro level but at macro level as well.

I have very canny experienced investors that take ZERO notice of macro factors and focus thier time and energy on things they can control and predict, i,e thier own micro market.

As an example had they worried about macro say in 2006 they might have sold, but now they are far far better off as rates fell so dramatically.

No disrespect thruge, but your advice is very much textbook style.

Conrad

dopester wrote: »

Do you really think lenders are flush with money and happy to lend out ever more of it to push values up? I think you've got an education coming to you, along with many others. Hi Conrad.

Love you too dopester!

I know where you're comming from here, but as I've been saying to you all this time, 95% of jo public do not concern themselves with the macro economics of it all.

Thier position is simple and it is this simple truth that will ensure property remains a good long term investment.

And thier simple logic is thus;

1) I don't trust city slicker to provide for my pension

2) I want to leave my wealth to my kids (pensions die with you once in retirment)

3) I understand bricks and mortar

4) I underststand prices and rents rise and fall, but history is on the side of me probably doing ok in 25 years

5) Times are tough now, and Banks cautious on lending, but I'm picturing the world in 20 years time when this is a dim distant memory


I just arranged a B2L for someone living abroad incidentally and the max age was 85.