Welcome back to our mortgage advice blog, where we share real-life scenarios and solutions to help our clients navigate the complexities of the mortgage market. This week, I had the pleasure of meeting a unique group of clients - a couple in their 70s with pension income and still in full-time jobs, accompanied by their daughter and son-in-law.
The parents had a clear goal in mind - to purchase a residential property for themselves to live in. However, due to their age, obtaining a standard residential mortgage proved to be a challenge. They were not keen on later-life mortgages either. Retirement interest only mortgage was unaffordable in any event.
The daughter and son-in-law, who were already homeowners themselves and even owned a buy-to-let property, considered helping their parents by purchasing a buy-to-let property and renting it out to them. While most lenders do not allow this on standard buy-to-let products, regulated buy-to-let was a viable option.
For regulated buy-to-let mortgages, unlike standard buy-to-let the affordability is based on the applicants’ personal income rather than any rental income received from the property rented out to family members.
Alternatively, we explored a reversed joint borrower sole proprietor mortgage. This type of mortgage is designed to allow adult children to support their parents mortgage in retirement. The term is based on the age of the child rather than the parents, allowing for more affordable mortgage payments for the older couple. With no maximum age restriction and the ability to consider up to 4 applicants, this option provided a way for the parents to own a property to live in with an affordable mortgage.
At our mortgage advisory firm, we understand that every client is unique, and we strive to find bespoke solutions to meet their individual needs. Whether it's navigating complex age restrictions or exploring alternative mortgage products, we are here to guide our clients every step of the way.
Stay tuned for more insights and advice from our team of expert mortgage advisors. Until next time!
Please note:
This information is intended for general guidance only and does not constitute personalised financial advice. If you are unsure about any aspect of mortgage or property-related advice, please speak to an FCA-authorised adviser. Your home may be repossessed if you do not keep up repayments on your mortgage.
The parents had a clear goal in mind - to purchase a residential property for themselves to live in. However, due to their age, obtaining a standard residential mortgage proved to be a challenge. They were not keen on later-life mortgages either. Retirement interest only mortgage was unaffordable in any event.
The daughter and son-in-law, who were already homeowners themselves and even owned a buy-to-let property, considered helping their parents by purchasing a buy-to-let property and renting it out to them. While most lenders do not allow this on standard buy-to-let products, regulated buy-to-let was a viable option.
For regulated buy-to-let mortgages, unlike standard buy-to-let the affordability is based on the applicants’ personal income rather than any rental income received from the property rented out to family members.
Alternatively, we explored a reversed joint borrower sole proprietor mortgage. This type of mortgage is designed to allow adult children to support their parents mortgage in retirement. The term is based on the age of the child rather than the parents, allowing for more affordable mortgage payments for the older couple. With no maximum age restriction and the ability to consider up to 4 applicants, this option provided a way for the parents to own a property to live in with an affordable mortgage.
At our mortgage advisory firm, we understand that every client is unique, and we strive to find bespoke solutions to meet their individual needs. Whether it's navigating complex age restrictions or exploring alternative mortgage products, we are here to guide our clients every step of the way.
Stay tuned for more insights and advice from our team of expert mortgage advisors. Until next time!
Please note:
This information is intended for general guidance only and does not constitute personalised financial advice. If you are unsure about any aspect of mortgage or property-related advice, please speak to an FCA-authorised adviser. Your home may be repossessed if you do not keep up repayments on your mortgage.
Iwona - Senior Mortgage and Protection Adviser
