Buy to let mortgage - age

wheredoesallthetimego

Those all seem to be comparing the fee with the amount that is being borrowed not with the expected term.
The valuation of the mortgage including fees and term will automatically compare the products so there is no need to separately consider the amount being borrowed.

In it's simplest form you can include the fee as part of the amount to be repaid over the expected lifetime of the product (whenever you expect to remortgage) then add that to the interest being repaid over that term and you can calculate an interest rate to compare products.
Of course it's not as simple as that as different products may give other benefits that can be factored in but that would be a personal choice.

kingstreet

Sorry to sound dense, but I'm one of those hard of understanding brokers, so could you clarify what you actually mean?

Thanks, muchly.

wheredoesallthetimego

Take a mortgage term of 2 years, interest payments of 1k, fees 3k
This gives a cost of 4k i.e. 2k per year

Take another mortgage term 10 years, interest payments 12K, fees 5K
Cost 17K i.e. 1.7k per year.

Second has higher fees and higher interest rate but can work out cheaper. Nothing to do with the amount being borrowed.
As I said though it shouldn't be considered as simply as that as there are other considerations but when you expect to re-mortgage should be taken into account.

Possibly more important is what you expect to be available in he future. All mine are now tracking the BOE at a very low rate - who could have predicted that? I didn't even consider it that important to track BOE rather than SVR (just a bit preferable).
My first one that came up my broker told me to check it. I called the company who said it moved to SVR, checked policy and called back and they agreed it was BOE rate. Without the broker I might well have re-mortgaged (so he lost fees on that one), actually I probably would have got round to checking it but would depend on how busy I was.

Thrugelmir

wheredoesallthetimego wrote: »

Income and affordability won't be a problem.

Can you eveidence this into your retirement years.

wheredoesallthetimego

>> Can you eveidence this into your retirement years.

Yes
Actually I consider myself retired now.

koexelek

wheredoesallthetimego wrote: »

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.

Most BTL lenders would want it repaid by age 75

wheredoesallthetimego

Thanks. Later than I thought.

angelsmomma

I am with the mortgage works and will be 80 when my buy to let ends

holly_hobby

BTL is unregulated lending, which means that true interest only (ie no independent repayment vehicle) continues to remain an option, with a typical max redemption age of 90 yrs.

If you have the rest of your portfolio mortgaged, there will be max limits of properties/lending held with 1 lending/banking group, so you'll need to make your broker aware of whom your current mortgagees are, and what the value of each os mortgage is with each individual lender in the mix.

Hope this helps


Holly

wheredoesallthetimego

Thanks.
I guess they are assuming that the risk will be covered by the ltv and can recover the value from the estate if needed.