UK Mortgages to Age 100+

Welcome to a further edition of INSIGHTS a newsletter covering aspects of UK mortgages for clients with complex circumstances.

We’ll discuss how UK mortgage lending has changed beyond recognition in recent years, with many clients stating at the outset ‘Im 67 so Im probably too old for a mortgage’ Not any-more.. the mortgage market for the UK has literally matured with the population! and we explore what is possible.

Here’s a case study – 2 min video YouTube Here:

UK mortgage to Age 100+ scenarios

Two important points to Note:

Buy to Let (BTL) Mortgage – With buy to let mortgages, lenders focus on the rental income from the property, not your age, job, or salary. So even if you’re retired or on a lower income, you could still qualify, as long as the rent comfortably covers the mortgage payments. For instance, we recently helped a 73-year-old expat in France, living on a £12K pension aside some other incomes, secure a £300K mortgage on a £450K property simply because the rental yield made it work. In fact, the mortgage term ran all the way to age 90!

Residential (Own Use) Mortgage – Residential mortgages are different because affordability is based on your own income and outgoings, now and in the future. Lenders want to see that you can manage payments into retirement — but the good news is, they’ve become far more flexible. Many now offer Retirement Interest Only (RIO) mortgages or even capital & Interest repayment terms up to age 100+. These options can help keep payments affordable, free up your budget, and let you stay in the home you love while still holding onto a healthy amount of equity.

Case Study –

Mr & Mrs Sands – Returning Expats from France – sold a property and now had £200K to put into a UK property to Re-patriate to.

Mr- age 75 £35K pension with civil service Mrs 69 – Basic State Pension £11K

Property Value £350K Mortgage Needed £150K

Deal Sourced – £150K on 30 Yr term Capital & Interest basis

To age 105 on Mr

Monthly Cost:£855 pcm

Market Updates

• Further improvements for Expats!! a lender has launched a new Consumer Buy to Let product. We will cover this is a later editions. Consumer Buy to Let (CBLT) means a person either used to live in the property, inherited it or intends a family member to occupy it. This is an underserved area for Expat lenders so its great to see another player in the market.
• Expat BTL lending saw a new 85% LTV deal also launched last week, it was quickly withdrawn probably due to demand, but get in touch if you want to be alerted to any other relaunches at that level of borrowing.
• The drive in on to build more homes in the UK, but this interesting report details why it may not be viable in 50% of the UK read here
• If your thinking of increasing rent on any of your properties next year you are not alone or in the minority read here

Next Steps…

Book a Free Discovery call here & if your not sure what a discovery call is all about Ive made a series of videos on what to expect here.

A Great way to get frequent updates, hints & tips and insider industry knowledge of the complex / expat mortgage market is to join our YouTube channel here.

Our Quick 60sec Quote page allows you to obtain the latest rates to be expected and you can request a specific quote by sending an email to info@mymotgagedeal.co.uk