We own two properties and looking to buy a third. Can you help?
Posted on 1 October 2013 by Mike
We are both aged 67. Man in employment with basic income of £65,000 plus a bonus this year of £50,000.00 Female with pension income in region of £13000.00. We have total savings (ISAs, shares, Savings bonds, deposit accounts) in excess of £400,000 and own two mortgage free properties valued at about £210,000 and £120,000. We wish to purchase a third property for £485,000 to live in., We want a 2 -3 year interest only 70 -75 % mortgage on the new property.We intend to let out the 2 other properties during the duration of the mortgage and anticipate that the rental income will approximate to the interest payments.. We would repay the mortgage at the end of the 2-3 year period from the proceeds of sale of one or more of the 3 properties. We have no debts or outgoings other than the usual domestic ones such as rates and utilities. Can you help?
You have summarised well your situation and I do believe that a solution can be found, however, the loan may have to be restructured amongst all three properties.
Key points of consideration here will be to establish your likely retirement age and pension income. As this is a case that will require a fairly advanced level of expertise, I would like to forward your details to to a suitably experienced broker? If you'd like me to do so then please let me know, and I'll arrange for one of them to contact you.
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