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Beyond retirement age..? Help!
Charlton_King
Posts: 2,071 Forumite
I have a particular situation to put to the brains out there.
I have an interest only mortgage with my current lender who insists on having the capital back, quite reasonably, at the end of the 'term' in three years time... which is linked to my retirement age.
My 'vehicle' for repayment was always going to be the sale of a buy to let property I own.
Thanks to careful money stewardship, I have been able to pay down this capital outstanding far more quickly than originally thought. It now occurs to me that with another year or two of borrowing beyond the term, I will actually be able to pay it off totally.
This would be a dream situation for me as a rental income stream in my retirement would be very welcome indeed, rather than the pittance given by foreseeable deposit rates.
So, question: would any lender consider me or am I stuck with this arbitrary, age-related date? The irony is that my income will actually increase above current levels when I start receiving state pension!
I have an interest only mortgage with my current lender who insists on having the capital back, quite reasonably, at the end of the 'term' in three years time... which is linked to my retirement age.
My 'vehicle' for repayment was always going to be the sale of a buy to let property I own.
Thanks to careful money stewardship, I have been able to pay down this capital outstanding far more quickly than originally thought. It now occurs to me that with another year or two of borrowing beyond the term, I will actually be able to pay it off totally.
This would be a dream situation for me as a rental income stream in my retirement would be very welcome indeed, rather than the pittance given by foreseeable deposit rates.
So, question: would any lender consider me or am I stuck with this arbitrary, age-related date? The irony is that my income will actually increase above current levels when I start receiving state pension!
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Comments
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There are a few BTL lenders who would give you a BTL mortgage until age 90 and on interest-only.
You don't say if the mortgage is a BTL mortgage on the let property, but that's how I'd do it.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Are you talking about the property you live in Charlton? Also are you still working now?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Could you not remortgage your B2L to clear the last bit of your residential mortgage? (or have I misunderstood?).
As has been alluded to above B2L mortgages are granted primarily on rental income (but can/do have other stipulations around home ownership and income levels).Thinking critically since 1996....0 -
Sorry, to clarify: the current mortgage is standard residential against my own home, not the BTL which is 'unencumbered'.
I am not 'employed' but live off a modest collection of pensions plus a tiny bit of self-employment and the rental income.
You see the problem... and why I would dearly love to keep the BTL!0 -
How much would you need to borrow?
How much are your gross earnings from pensions?
How much is the rental income from the property?
What's the BTL property value?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
I'd go and see a broker. I'd suggest the remortgage on the B2L would be the easiest way of doing it. You can offset the interest on the mortgage against your rental income too.Thinking critically since 1996....0
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Purpose of funds problems?somethingcorporate wrote: »You can offset the interest on the mortgage against your rental income too.
Not saying it won't be allowed (withdrawal of capital) but I'd get professional advice first.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »How much would you need to borrow?
How much are your gross earnings from pensions?
How much is the rental income from the property?
What's the BTL property value?
Well, we're looking 3 years into the future but the answers are:
1. Probably around £65k
2. About £20kpa
3. About £5kpa net
4. Currently about £90k
and just for good measure...
5. My own home is worth about £260k at the moment0 -
So, 72% loan to value, income looks fine.
For £65k, rental income needs to be £406 pm (ish) so that looks okay too.
I'm going to agree with sc. Find a good whole market broker and there should be a few options.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thank you so much, everybody.
I assume the feeling is I should stay with my current lender (Accord) at least for the next three years... better rates..?0
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