Buy-to-Let mortgage

BritWeb

Just trying to get some answers before aproaching the bank. If buy-to-let mortgage comes to an end at the end of a person's retirement, could it be extended after retirement on the basis that the property brings in substatntial rent? Is there any option to hold on to it rather than passing it on to children or selling it off once retired? Thanks.

SavingSteve

Most lenders will expect you to have your own income just in case. £25k seem to be the norm. If your pension income in total is £25k a year you should have no issues securing borrowing (presuming your LTV and rental coverage ratios are accepted)

amnblog

That depends on the lender

brit1234

BritWeb wrote: »

Just trying to get some answers before aproaching the bank. If buy-to-let mortgage comes to an end at the end of a person's retirement, could it be extended after retirement on the basis that the property brings in substatntial rent?

You could always pay off the mortgage with the repayment vehicle you should of had. By the way, what was your repayment vehicle you had on your interest only mortgage? Far too many dodgy doings with people using IO for cheap mortgages and lying with no intention to pay the mortgage down.

SavingSteve

Quite legitimate, on a buy to let, for the OP's repayment vehicle to be to sell the property at the end of the mortgage term. This assumes no negative equity of course.

MortgageMamma

brit1234 wrote: »

You could always pay off the mortgage with the repayment vehicle you should of had. By the way, what was your repayment vehicle you had on your interest only mortgage? Far too many dodgy doings with people using IO for cheap mortgages and lying with no intention to pay the mortgage down.

It was a buy to let - sale of property is an accepted repayment strategy. I understand what you are saying about IO mortgages and repayment vehicles where a residential mortgage is concerned though. There is a balance to the argument that to have a mortgage even on interest only is better than renting as you have stability and potential to improve your finances over time. When people take and interest only mortgage they are advised that a repayment vehicle is required and its mostly evidenced at outset. People choose their own paths in life despite advice - there is no right or wrong, it either bites you on the !!!! in future or it doesn't.