We were approached by a very experienced landlord looking to refinance a three-bed town house in Kent because his existing buy to let mortgage had reached its full term.
Despite his age he wanted another long a term loan and also hoped to reduce his monthly mortgage payments.
The majority of buy to let lenders set a maximum age limit of 75 years at the end of the loan, so the choice of provider was quite restricted.
There are a handful of lenders which stretch to 85 years but we found only one that will allow borrowers up to the age of 90. (There is a lender with no upper age limit but borrowers must be under 70 when they apply for the mortgage, which meant that our client didn’t qualify).
The landlord chose a two year discounted tracker with a term of 25 years. The rate offered allows him to reduce his mortgage payments by £266 pcm.
Here are the details:
Property value: £297,000
Loan amount: £215,000
Rate: 3.29% 2 year discounted tracker
Term: 25 years interest only
Mortgage payment: £601 pcm
Previous mortgage payment: £867 pcm
Lender arrangement fee: 2% (£4,030)
Rental income: £1,200 pcm
Gross yield: 4.8% pa
Consultant: Nick Helm, 01732 471608