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Buy to let mortgage - age

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Comments

  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    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.

    The mortgage will be supported by the rental income therefore no need to rely on you still having to earn at age 80 or whenever the term goes to. Unlike a residential property it does not need you to support it and can be sold to repay the debt if required at the end of the term.
    I am a Mortgage Adviser
    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.
  • I was pointing out that most people will die before they are 90.
    Also the rental income covering the mortgage doesn't really matter if the borrower isn't willing to use it to pay the mortgage.

    It's the ltv that mitigates the risk for the mortgage company and it sounds like they are willing to wait for administration in that eventuality.
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