I'm 53 years old - would I be able to take out a buy to let mortgage at my age for a small investment flat?

Posted on 19 May 2016 by Maria

"Would I be able to take out a buy to let mortgage at my age for a small investment flat? I have about £35,000 deposit and am aged 53. It would be bought by myself and my partner who is 48yrs and full time employed at a higher salary."

Thank you for your query submitted on the John Charcol website.

You and your partner are both employed, and looking to borrow £160,000 on a property value of £200,000 and have £35,000 deposit. It important to remember that you would also need to factor in buying costs for buy to let properties such as solicitor’s fees and stamp duty, which at £200,000 purchase price would be £10,000. This means that you would only have a small deposit. Unfortunately at 80% loan to value the choice of products will be limited and ideally you should have a deposit to reduce the property LTV to 75% or lower to ensure we can get the most suitable rate based on the rental value for the investment flat. Realistically you should factor the stamp duty cost as a separate expense.

Lenders also prefer you to be a residential owner occupier (with or without mortgage). If mortgaged you must be able to show 12 months satisfactory conduct of payment history. Some lenders may consider applications from non-owner occupiers with mortgage history subject to plausibility, however limited lenders accept applications from first time buyers.

If you are able to raise extra cash for the deposit and factor the other costs associated with the purchase, then this is something we can definitely help you pursue further and I suggest you call us in the future.

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Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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