Can an old person get a mortgage

misterstingy

My wife and I bought a buy to let property when I was 55. We have a 15 year interest only mortgage. The plan was to sell the property before the end of the mortgage term, pay off the mortgage and hopefully see some profit. Now we are in negative equity, selling is currently not an option. I am 60 now, but worst case scenario is we are still in negative equity in ten years time (remember the early nineties property crash).

My question is, will we be prevented from re-mortgaging at age 70 simply because of our age? My wife is one year younger than me.

whitewing

Will you have a private pension?

The_J

For a BTL you are currently good to go up to age 90.

This could change in the future so there are no guarantees.

seven-day-weekend

Can you change the mortgage to a capital repayment as then you will not owe so much at the end?

The_J

I would advise against switching to a capital and interest mortgage primarily for tax reasons but also because switching back could be tricky in the future. Probably not but not worth taking a risk.

Put money aside now to counter any potential losses if you are worried.

misterstingy

I will have a small private pension, but BTL mortgages are mainly based on the rental income of the property.

Yes I can reduce the mortgage by paying off some of the capital, which I will have to do if property prices stay as low as they are now, as the current mortgage is greater than the value of the property. That's not a problem, the only real stumbling block for me is the age thing.

'The J' is it true that you are good to go with a BTL mortgage up to age 90?

Is there anywhere I can get official confirmation of that?

Is it only certain lenders that applies to?

Thrugelmir

If the property is let profitability then repay the mortgage.

Once the mortgage is repaid the property will pay you an income.

That's how BTL should work.

Dave_Ham

Big J is spot on - 90 years young is all good...