Posted on 9 February 2011 by mrs j barnes
We are mortgage free but in our 60s, we would like to release capital in our house to buy a buy to let propety for our children. Would we be allowed to do this?
Your age need not be an obstacle to obtaining a mortgage for the reason you state. It will however limit the length of time you can borrow the money for as most Lenders insist the mortgage is repaid by the time you are 75 and some even sooner.
Depending on the amount you need to borrow a repayment mortgage may prove to expensive, you are repaying both capital and interest each month whereas an interest only mortgage may be cheaper on a monthly basis but will leave you with the thorny issue of how to repay the outstanding debt. There is another alternative known as a Lifetime mortgage whereby the interest is rolled up and not repaid until you property is sold. Given your ages this could be a long time and the ultimate cost very high.
I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 and tell the adviser the date of your question, they will be able to look at your situation and take it from there.
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