Getting a Buy To Let mortgage as an older borrower can be more difficult but it’s definitely not impossible. There are a number of influencing factors and different lenders will have their own criteria that need to be met but we are here to help you.
As property prices increase and the new pension rules give older people more flexibility around what they do with their pension, Buy To Let mortgages are a popular choice. But, if you don’t have enough to buy a new property outright you will have to look at getting a mortgage to make up the total sum.
HOW DO YOU GET A BUY TO LET MORTGAGE AS AN OLDER BORROWER?
Buy to Let mortgages work slightly differently to regular mortgages. Affordability is typically determined by the expected rental income from tenants rather than by the salary or pension savings of residents.
Because of this, lenders are generally less concerned about credit ratings than they would be if you were looking for a regular mortgage.
Generally speaking, the younger you are the less risk you pose and therefore the more choices you have when it comes to mortgages.
This means that if you’re between 60 – 70 years old you’ll probably be offered better mortgage deals than if you’re 70 – 80 years old.
That said, there are lenders out there that will have no upper age limit as long as they are sure you can pay the loan during your retirement. Which typically relies on your individual situation.
The best thing to do is to speak to a whole-of-market broker who will be able to help you find the best deal.
HOW DOES THE PROPERTY TYPE AFFECT YOUR BUY TO LET MORTGAGE OPPORTUNITIES?
As with any mortgage, there are properties such as those with thatched roofs or timber frames that will carry more risk and therefore may be approached cautiously by lenders.
But, every lender has their own criteria and typically look at the specific property in question before determining their verdict.