Lennon, on 05 March 2012 - 05:02 PM, said:
And how do they pay the mortgage on the one that they live in? Or how do they pay the capital if the repayment date is the same as the retirement date?
There are so many holes in this that I could use it as a fishing net...
The flat (btl) they bought 4 yrs ago IO 90% LTV
They use it for work
They pay both out of salary of the one that still works
The salary covers both mortgages just nothing more and they live off the others smallish
The BTL started at 800 month and now is 150 but that is up soon
The other is supposed to be main residence they bought it for retiring later but don't like area so its on market
They have a;ready seen one they like if it sells and I think they will be refused mrtgage this time as they are too old and too much debt. Won't listen to me though so I am asking for advice here
to explain to them why they cold end in trouble if rates rise and prices fall
When they bought the one they are selling both were still working