Banks target over-55s with cheaper loans on buy-to-let

chucknorris

onlyroz wrote: »

I haven't looked into it closely but I thought that there were holiday-let mortgages available.

Our intention would be to get somewhere in a location that would be easy for us to visit ourselves, but which would generate enough income to hopefully pay for itself. I've been considering Bournemouth, but haven't seriously thought it through yet. My assumptions have been based on using a £50k deposit from his pension to buy a £200k property, which I think would get us a two-bed terrace a few streets away from the beach and within walking distance of the station.

We only went so far investigating this, so I am not 100% confident, but I think that you would struggle to get a mortgage, although you could of course remortgage your home instead. Someone at my bowling club has both buy to lets and a holiday home and he did confirm that the holiday home was a lot more work (as you would expect).

padington

chucknorris wrote: »

They are specifically banned from buy to let mortgages, are you saying that you would lie? I'm not sure how you might get found out, but it isn't a path that I would want to go down.

No probably not because of the insurance liability should something go wrong but it's very hard to police.

wotsthat

chucknorris wrote: »

We only went so far investigating this, so I am not 100% confident, but I think that you would struggle to get a mortgage, although you could of course remortgage your home instead. Someone at my bowling club has both buy to lets and a holiday home and he did confirm that the holiday home was a lot more work (as you would expect).

When I purchased a holiday home I used a broker to find a mortgage and used Santander. There were no problems until a year in when they asked why I wanted to use a different correspondence address to the property - when I told them they went to defcon level 5 and wanted to charge me a lump sum and additional interest. Luckily I'd been completely honest and kept decent records to prove the error belonged to them.

They are now paid off by borrowing against my main home. Interestingly although Nationwide have no interest in my holiday home there was a clause to say that if the additional borrowing was for a property I couldn't let it out.

My personal view on holiday home ownership is that they should be considered a cost rather than an investment. There's some hassle too - if you've got a house you should worry about break-ins and if you've got an apartment then the management costs will be higher than budgeted. Plus you need to double up on everything like council tax, TV license, broadband, utilities etc.

Letting it out has been considered to mitigate some of the cost but friends and family who have stayed for free haven't looked after it as we might have wished so I doubt people paying the going rate would either.

Best thing I ever bought although for non financial reasons

chucknorris

wotsthat wrote: »

When I purchased a holiday home I used a broker to find a mortgage and used Santander. There were no problems until a year in when they asked why I wanted to use a different correspondence address to the property - when I told them they went to defcon level 5 and wanted to charge me a lump sum and additional interest. Luckily I'd been completely honest and kept decent records to prove the error belonged to them.

They are now paid off by borrowing against my main home. Interestingly although Nationwide have no interest in my holiday home there was a clause to say that if the additional borrowing was for a property I couldn't let it out.

My personal view on holiday home ownership is that they should be considered a cost rather than an investment. There's some hassle too - if you've got a house you should worry about break-ins and if you've got an apartment then the management costs will be higher than budgeted. Plus you need to double up on everything like council tax, TV license, broadband, utilities etc.

Letting it out has been considered to mitigate some of the cost but friends and family who have stayed for free haven't looked after it as we might have wished so I doubt people paying the going rate would either.

Best thing I ever bought although for non financial reasons

We've discussed this before, I seem to remember that yours is in Cornwall and you also have local family and/or friends down there too? Which must save a lot of extra hassle and running around.

wotsthat

chucknorris wrote: »

We've discussed this before, I seem to remember that yours is in Cornwall and you also have local family and/or friends down there too? Which must save a lot of extra hassle and running around.

Yes we have family down there but it was getting a bit wearing staying at the MIL's. Buying a place to avoid free accommodation was a bit drastic but the financial crash really helped us out both in terms of the capital and finance costs. Without the crash it would never have happened and knowing there is family within 5 mins helps with the peace of mind aspect.

It's the first step to retirement down there, the next will be buying the retirement house and I'll commute for 3 - 4 years followed by getting a local job of some sort. Another financial crisis where I'm, again, unscathed would come in handy in a few years but I've been so lucky I feel bad even wishing for more.

ruggedtoast

Guys, when I see older people relaxing, kicking back and enjoying the things they have accumulated.

It just makes me so bloody angry.

:mad::mad::mad:

ukcarper

ruggedtoast wrote: »

Guys, when I see older people relaxing, kicking back and enjoying the things they have accumulated.

It just makes me so bloody angry.

:mad::mad::mad:

I think you should seek help.