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Am I too old to get a mortgage?

PUBLISHED: 15:52 29 September 2020 | UPDATED: 16:05 29 September 2020

Ask the expert at Smith & Pinching about age restrictions on mortgages     Picture: Getty Images/iStockphoto

Ask the expert at Smith & Pinching about age restrictions on mortgages Picture: Getty Images/iStockphoto

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Diane Fish, Independent Financial Adviser with Smith & Pinching, advises on the full range of mortgages and other lending options.

Diane Fish is an Independent Financial Adviser with Smith & Pinching, Chartered Financial Planners     Picture: Smith & PinchingDiane Fish is an Independent Financial Adviser with Smith & Pinching, Chartered Financial Planners Picture: Smith & Pinching

I’m in my late sixties and own two residential rental properties. I would like to purchase another while there is no stamp duty. I have an existing mortgage on one of my rental properties but took a mortgage holiday as I couldn’t get a new tenant during lockdown and I didn’t want to be reliant on my other property’s rent to make the repayments in case anything happened and my other tenant couldn’t pay. I’m pleased to say that we’re back on track now with a new tenant so have restarted our payments. Can you tell me if I am too old to get a mortgage for another property and if the mortgage holiday is going to affect any mortgage that might be on offer?

Diane Fish of Smith & Pinching responds:

I can reassure you that you are definitely not too old to get a mortgage. While there used to be an upper age limit of 75 for mortgages, many lenders are now prepared to forgo this. However, some may require the borrower to be under a certain age at application stage.

I’m confident that you will also find that mortgages will be available to you despite the fact that you took advantage of a mortgage holiday for your existing property, provided you meet all other eligibility criteria. Criteria are changing constantly so this would be something that would need to be discussed with any prospective new lenders before an application is submitted. The good news is that, provided you still meet the affordability criteria, there should be a number of different options on offer.

As you may well be aware, buy to let mortgages are generally offered with a slightly higher interest rate than standard residential mortgages, because of the perceived additional risks to your income in terms of void periods and maintenance or repairs. You may also need to put down a larger deposit than with a standard mortgage, often at least 20pc or 25pc. Typically, these types of mortgages are calculated by lenders on an Interest Only servicing basis.

I recommend that you speak with an independent mortgage adviser who will help you work out what size of buy to let mortgage might be available to you in the current climate.

Any opinions expressed in this article do not constitute advice. Your home may be repossessed if you do not keep up payments on your mortgage. There will be a fee for the mortgage advice. The precise amount will depend upon your circumstances, and the type of lending taken. Smith & Pinching’s minimum advice fee is £700.

For more information visit www.smith-pinching.co.uk


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