Buy to let mortgage - age

wheredoesallthetimego

I'm assuming it wouldn't be possible to get an interest only buy to let mortgage now.

What term could someone 57 years old get.
If it is only 10 years then the repayments would be prohibitive.

Another option would be to add to my residential mortgage which is tracking at boe + 0.89% = 1.39% but I assume it would mean remortgaging at current rates so that would be out.

GMS

For interest only the term is irrelevant for payments. They will be the same whether 5 or 30 years.

BTL is fine for interest only but you need to figure how you will repay the capital borrowed. This is where term can become an issue.

Speak to a broker as many BTL mortgages are broker only.

wheredoesallthetimego

Thanks for the response.

>> I'm assuming it wouldn't be possible to get an interest only buy to let mortgage now.

Are you saying that's wrong?
If so the question would be - what term can a 57 year old get for a buy to let interest only mortgage?

GMS

What do you mean by now? Age?

Yes it could be possible. What are you trying to do?

As a BTL mortgage is supported by the rental income age is less of an issue although there will be a requirement for a minimum earned income with most lenders.

Broker is the best way for a BTL

wheredoesallthetimego

No - thought interest only wouldn't be available even for buy-to-let. Haven't had to take out a mortgage for a while though.

The age bit was just related to the term - mainly assuming it would be repayment but for interest only would still like an estimate as to the term that would be available for someone who was 57.

I would be using a broker but want some idea as to what I would be looking at and that doesn't affect the questions.

GMS

Interest only fine for BTL. Broker should assess your needs and preferences and go from there.

Is this a purchase or a remortgage?
What is your income? Many lenders want 25k p.a minimum
Any other BTL's?
Rental income per month?
Loan required?
Purchase price/valuation?

wheredoesallthetimego

It's a purchase.
Income and affordability won't be a problem.
Yes I have a few other rental properties.
I like to keep around 50% ltv but this would be more like 60%-65%

GMS

As an existing landlord there are lenders who wouldn't need a minimum income. As you have it anyway then should open up more lenders.

At 65% LTV you should be able to fond a great deal assuming no credit issues.

Next thing to consider is the lender fees. Some are huge on BTL's so depending on loan amount it could be better to pay a higher rate in return for a lower fee.

Broker will advise on how to proceed

wheredoesallthetimego

Thanks.
I always factor in all the fees with any fixed term for my valuation of the mortgage.
I've yet to find a broker that understands that concept - that a higher fee with a longer term higher fixed rate can be better value or that a high fee with a low short term fixed rate can be bad value (think they had problems with that in the US).

wheredoesallthetimego

Would my age limit the term of the mortgage?
Guess the question is about how old someone can be and still get a buy to let mortgage.

kingstreet

wheredoesallthetimego wrote: »

I've yet to find a broker that understands that concept - that a higher fee with a longer term higher fixed rate can be better value or that a high fee with a low short term fixed rate can be bad value

Really?

It's a recurring message among the brokers on here and I don't think we're an unrepresentative sample of brokers in general. For example, mine;-

http://forums.moneysavingexpert.com/showpost.php?p=59927215&postcount=2

http://forums.moneysavingexpert.com/showpost.php?p=56918673&postcount=7

http://forums.moneysavingexpert.com/showpost.php?p=43667896&postcount=3