Lifetime fixed buy-to-let mortgages where max LTV increases the older you are

by Mark Alexander

7:00 AM, 7th August 2019
About 2 weeks ago

Lifetime fixed buy-to-let mortgages where max LTV increases the older you are

Make Text Bigger
Lifetime fixed buy-to-let mortgages where max LTV increases the older you are

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:-

  • Age 54 and under – product not available
  • Age 55 – Max LTV is 19%
  • Age 56 – Max LTV is 20%
  • Age 57 – Max LTV is 21%
  • Age 58 – Max LTV is 22%
  • Age 59 – Max LTV is 23%
  • Age 60 – Max LTV is 24%
  • Age 61 – Max LTV is 25%
  • Age 62 – Max LTV is 26%
  • Age 63 – Max LTV is 27%
  • Age 64 – Max LTV is 28%
  • Age 65 – Max LTV is 29%
  • Age 66 – Max LTV is 30%
  • Age 67 – Max LTV is 31%
  • Age 68 – Max LTV is 32%
  • Age 69 – Max LTV is 33%
  • Age 70 – Max LTV is 34%
  • Age 71 – Max LTV is 35%
  • Age 72 – Max LTV is 36%
  • Age 73 – Max LTV is 37%
  • Age 74 – Max LTV is 38%
  • Age 75 – Max LTV is 39%
  • Age 76 – Max LTV is 40%
  • Age 77 – Max LTV is 41%
  • Age 78 – Max LTV is 42%
  • Age 79 – Max LTV is 43%
  • Age 80 to 90 – Max LTV is 44%

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.

You can read more articles and discussions about Lifetime Buy-To-Let Mortgage via THIS LINK.

Show Form to get a Lifetime BTL Mortgage Quote


Comments

Howard Reuben CeMap CeRER

10:22 AM, 7th August 2019
About 2 weeks ago

This is not new. Canada Life is the new trading name for Retirement Advantage and I / we / Property118 published the launch of that product a couple of years ago > https://www.property118.com/buy-let-equity-release-retirement-advantage-launched/
The concept may now be years old, but the principle is still fantastic for the right borrower.
And available via my specialist / Lifetime Mortgage brokerage, which is authorised to advise in the areas. Contact details via my profile link above.

David Lawrenson

14:32 PM, 7th August 2019
About 2 weeks ago

Sounds in principle like a good idea.
I think the changing LTV is especially smart.

One word of warning though, I would suggest all potential borrowers, especially any portfolio BTL borrowers, (who lack the same protections as "Joe Soap Consumer"), look v carefully to make sure there is no wriggle room for the lender.

West Bromwich Building Society, (aka The West Brom) ,famously tried to use clauses in their small print to renege on their tracker mortgages some years ago - and they would have got away with it too, if they hadn't had to face Mark Alexander and the group action he and Cotswold Barristers organised.
It was some fight, after the Ombudsman and FCA said they were not interested and after initially losing at the High Court.
But most people won't have recourse to that again if things go wrong.

Just worth reminding folks of that.
You can read the story here:
https://www.lettingfocus.com/blogs/tag/west-brom-tracker-mortgage/

Kind regards
David Lawrenson
http://www.LettingFocus.com
Unbiased Landlord Advice

Mick Roberts

14:46 PM, 7th August 2019
About 2 weeks ago

Well done Mark for finding & putting all details on here in Laymans language.

I know these products are contentious, but for some, & I know a few, they could be just what they need to give them a few holidays later in life & some better quality of life in the last 10 15 years or so, they may not have had instead of living like a peasant for the last 15 years just surviving & being miserable.

Yes LTV is pathetic, as is high interest rate, but if they don't want to sell & want to live there forever, they get some quality & fun they would have otherwise not had.

Howard Reuben CeMap CeRER

14:52 PM, 7th August 2019
About 2 weeks ago

I'm looking at a deal for a Client at the moment - not necessarily using the product above, but of course it would be remiss not to offer as an alternative option for consideration - and he has a £1m property in west London, and needs a £200k mortgage. The (standard) mortgage would be approx £500pm / £6k pa, but this outgoing is of course a reduction in his cashflow and when the tax bill arrives, if he decides that this strategy is right for him, then he will have the £6000 'saved' to use towards the tax. Just one of the many features and benefits of this product. So, not just for the 'miserable peasants' Mick ( 🙂 ) and not just to put towards holidays etc., but also clever financial planning for future cashflow and business strategy arrangements

Mick Roberts

15:06 PM, 7th August 2019
About 2 weeks ago

Reply to the comment left by Howard Reuben CeMap CeRER at 07/08/2019 - 14:52Yes brilliant Reuben that u know this stuff to help all sorts.
I'm from an area where me mates Mums aren't well off & they get out this 'peasant' life.
I've even thought of it for me in 20 30 years on me own house if wanted to just blow the lot on first class travel everywhere. Only a thought, but who knows if not leaving me own house to anyone & another way out of screwing the Taxman out the Inheritance tax without any planning maybe...…...

Mark Alexander

15:11 PM, 7th August 2019
About A week ago

Reply to the comment left by Mick Roberts at 07/08/2019 - 15:06
This version isn’t for your own house Mick, but a similar product does exist for those.

By the time I am 70 my own LTV should be very low and I plan to switch to these types of products. My net income will go up and my tax will go down.

Have a read of some of the linked case studies to see how some very financially savvy and mature landlords are considering to use this product. I think you may have missed the point of this series of articles Mick, because these products offer much more than a way out of poverty for cash strapped elderly homeowners, which appears to be the angle you are coming from with your comments.

Mick Roberts

15:44 PM, 7th August 2019
About A week ago

Reply to the comment left by Mark Alexander at 07/08/2019 - 15:11
Yes, I was initially referring to me mates Mums etc, as they are not well off.
But yes, saw the threads on here the other day for BTL Landlords too.

And yes, do understand that u can also have these even if u r well off, as that's why even thought of for meself in 30 years, as I hope to not 'need' the money, but Hey ho u know what, let's blow the lot. Who knows what the future holds. But if people keep reading on here, they may discover options they otherwise wun't have known.

But the other side of me, I've had enough of mortgages, sick of Lenders making mistakes. And now the kids answering the phone can't see there is a mistake till u complain & get someone with intelligence. But that's another story.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Tips to parents to help their children buy their first home

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More