Fair Rents (Scotland) Bill or Artificial state manipulation of free market rent?10:34 AM, 6th November 2020
About 3 weeks ago 36
Yes, you read that right. It is now possible to obtain BTL mortgages with an indefinite term and an interest rate that will never change, EVER!
Even if you’re 90 years old you can qualify for these buy-to-let mortgages with virtually no underwriting at all, and it will not need to be repaid until you die or go into a care home, even if you live to be the oldest person on the planet.
The product provider is Canada Life, who insist upon you using a financial adviser to gain access, you cannot go direct.
You can choose to service the mortgage interest or to let it roll up, the latter of which is quite controversial as you will see from the excellent discussion thread via THIS LINK.
The flexibility built into these mortgages is amazing in that you can choose whether or not to service mortgage interest whenever you wish. Likewise, you don’t need to take all of the money up-front, you can draw down up to the maximum LTV at any time and interest is only applied to the outstanding balance. The interest roll up option also comes with a guarantee of no negative equity, which means that if the mortgage balance ever exceeds the value of your property you will not be charged any more interest during that period, nor will you go into default or risk leaving a negative equity position to your loved ones.
Also, providing you haven’t borrowed more than the original acquisition costs of your properties, you can claim 20% tax credits on 100% of the mortgage interest whether you allow the mortgage interest toll roll up or whether you service it. This has also been debated at high level in comments section of THIS ARTICLE.
The downside is the maximum LTV, which increases the older you get, as follows:-
The lifetime fixed rates are currently 5.63% to 5.98% (as of 8th Aug 2019), dependent upon the configuration of the product you choose.Show Form to get a Lifetime BTL Mortgage Quote
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