Think you can’t get finance? Think again… Nick Helm explains why age is no barrier when it comes to property investment.
Residential mortgage lenders and buy to let mortgage lenders have very different mindsets. Just because you need to repay the mortgage on your home by the time you reach 70th birthday (as a general rule), it doesn’t mean that it’s time to sell-up your investment properties.
If you're looking to borrow personally then are two lenders in the market which do not impose an upper age restriction at the end of the loan term.
The Mortgage Works: You must apply before your 70th birthday! The Mortgage Works offer terms up to 35 years, so technically you could hold onto this mortgage until you’re 104!
Precise Mortgages: You must apply before your 80th birthday! Precise also offer terms up to 35 years, so technically you could hold onto a mortgage with them until you’re 114!
Both of these lenders are intermediary only – meaning they can’t be accessed via the public. If you would like any more information, feel free to give me a call today. My number can be found below.
If you’re happy with your mortgage term coming to an end before your 85th birthday, then it’s even better news for you. There are a good handful of lenders which stretch their age limit to 85 years at the end of the loan term.
Borrowing via a limited company:
When it comes to limited company lending there really is such a thing as NO upper age limit. Our lending brand Keystone Property Finance doesn’t impose any upper age limit for directors and it’s not alone! So, if age is a factor for you perhaps it’s time to make the switch – of course, do take professional advice from your accountant in this regard.
The reason buy to let lenders are a lot more comfortable with lending into older age, is because they base their affordability calculations on rental income, rather than an applicant’s pension or personal retirement income. That being said, it is worth bearing in mind that you will still be asked to provide evidence of personal income when making an application. This is just so the lender can be comfortable that you can make repayments during a rental void period.
Hoping to beat my own personal record…
My own personal record, set a good few years ago now – was arranging a 25 year term interest only buy to let mortgage for a married couple aged 102 and 103! They had recently moved in with their son and had decided to rent out their former home.
I think this proves that when it comes to buy to let, the saying ‘age is no barrier’ really is true!
If you would like any more information on the lenders listed above or helping sourcing finance, please do get in contact.
You can call me directly on 01732 471608 or the main line on 0345 345 6788.