Lifetime BTL Remortages for people over 75 years of age

by Mark Alexander

10:28 AM, 31st July 2019
About 4 months ago

Lifetime BTL Remortages for people over 75 years of age

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Lifetime BTL Remortages for people over 75 years of age

This is an extremely niche BTL mortgage product, but I am sharing the details on behalf of a broker friend who specialises in this market.

It isn’t easy to get a BTL mortgage if you’re over the age of 75, let alone one that is on an interest only basis for an indefinite term, i.e. not payable until the day you die.

The minimum property value is £70,000 and the maximum LTV is 40%.

The interest rate is fixed for life from 5.63% to 5.82% which isn’t bad at all if you want/need long term certainty. It can either be rolled up indefinitely, with a guarantee of no negative equity, or serviced monthly.

The arrangement fee is fixed at £1,995. There are no valuation fees.

Unlike traditional mortgage lending, the older you are the more you can borrow. Similar products are actually available from the age of 55. If the property is owned in joint names the youngest persons age will apply. However, the maximum LTV for a person who is only 55 is just 19%. This is to factor in the guarantee of no negative equity on rolled up mortgage interest and the associated risks to the lender.

Several years ago I predicted that this form of lending would become mainstream as the BTL market matures and the average age of landlords increases. For some people, this is just the lifeline they will have been looking for, especially if they are more mature and have interest only mortgages which are due to be repaid. For others, it is good just to know these products are now available and can be considered for longer term strategic planning.

Perhaps best of all is the option to roll up interest. Until now it hasn’t been possible to have no monthly interest payments and effectively spend equity tied up in a BTL portfolio, but it is now!

Other underwriting criteria

If the LTV fits, you’re not bankrupt, the property is let on an AST and you have a pulse and permanent right to reside in the UK they you can have one of these mortgages. There is no other underwriting criteria at all.

Please note that even though these mortgage products are unregulated, I do not provide advice on whether they are appropriate for you or not and that this article must not be considered as advice. That said, if you have any questions about the product I will do my best to answer them in the comments section below.

If you would like me to refer you to my broker friend, please complete the contact form below.

Show Form to get a Lifetime BTL Mortgage Quote


Comments

Lindsay Keith

14:02 PM, 1st August 2019
About 4 months ago

Write me off as an old miseryguts but a lifetime in the Law suggests that there may be somewhere a disappointed beneficiary or several who will be less than excited at the dissipation of the family home in equity release contracts' rolled up interest etc., so they receive nothing from their ancestor's estate. It doesn't take a maths genius to see compound interest rolling up fast along with penalties for early redemption. I am also well aware from work in the professional indemnity and Disciplinary Tribunal fields that too many of our professional brethren's file notes are inadequate, especially regarding their advice to applicants for these loans as to the merits or otherwise and the consequences of entering into such a binding contract. Some legal firms refuse the easy money to act in such matters as they share my gloomy view that Equity Release may in time take over from PPI as another milch cow for disgruntled claimants, meritorious or not. So, be very careful if any of your readers are invited to 'assist' the target client!

Allen Shepherd

10:10 AM, 3rd August 2019
About 4 months ago

I'm 70 next birthday and last year got a 35 year interest Only mortgage from Precise Mortgages - while my wife will be 74 next Birthday has also recent got another 35 year interest only mortgage from Précise Mortgages at a sensible rates of 3.79 % fixed for 5 years with a variable rate after that

Mark Alexander

10:26 AM, 3rd August 2019
About 4 months ago

Reply to the comment left by Allen Shepherd at 03/08/2019 - 10:10
Hi Allen

Congratulations!

Ageism in BTL has never really made sense because the income from which the mortgages are serviced comes from the rental value of the property as opposed to the owners ability to service the debt out of earned income. Nevertheless, there are other circumstances which need to be taken into consideration for pure 'common sense' reasons. Clearly, the lady who posted the initial question is struggling to service her mortgage and would find it very difficult to obtain another one due to her earning status. Age isn't really the issue.

It's a pity we have not heard from her but I'm quite sure that she will be following this thread with interest (along with many others in similar positions) and finding the various suggestions both informative and helpful.

It is quite clear that she needs to consider all of the well meaning comments and then to seek professional advice if she does still wish to consider the Lifetime BTL mortgage option available to her.


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