Mortgage at 62

Freddie1982

Hello, I was wondering can my parents get a 25 year mortgage to buy a 2nd home to rent out? And use there current house as equity?

Thrugelmir

Depends on age and income etc.

Freddie1982

62 years old, both wOrk full time but will retire anytime between 65-70

holly_hobby

Age is not so restrictive on buy to lets - the most important thing is that the rental income is a min of 125% of mortgage commitment (which may be interest only).

Also, most lenders (but a couple) look for a minimium income of 25k (which may be retirement income) - so depending upon Mum & Dads income situ they may be restricted comparision wise.

Minimum deposit of 20%

I would suggest sitting with a whole of market broker, who will not only evaluate the best solution to their requriements, but also/should also support them throughout the whole application process and beyond.

A word of advice though, becoming a landlord can be very rewarding IF you get it right, right property, location, tenant and yield - however it can all go wrong. Be aware that you need to make sure of emergency funds for repairs, any management fees, loss of tenants etc, and thats ignoring the fact that property can be a pretty ill-liquid asset, which at Mum & Dads age may not be the wisest place to sink a 20% deposit ....

Do your homework, research your target location and audience and take advice from local estate agts re demand, ceiling rents, etc ...

Hope this helps (and wasn't too negative ) .. with good luck if they take the plunge !!!

Holly x