Buy to let mortgage-borrowing much less than market value

Suzyfield

We are looking to take over a mortgage from a family member. We would like to get a buy to let mortgage but our problem is that the mortgage we are looking to take over is for £93K and the house value is approx £150K. I spoke to an advisor today who says that we need to get a solicitor to say that we are buying a house valued at £150K so it looks good that we are borrowing a low percentage, around 60%.
Has anyone been in a similar situation?? The advisor said we might have trouble because we are borrowing a lot less than what it is worth.

I would appreciate any advice as to what we need to do next?

Thanks

Bunny_Mad

Hello.
I recently (less than a week ago) read another post about another FA suggesting that the purchase & deposit figures were 'massaged' shall we say! And it was pointed out that this would actually be Fraud. It is something which in the past was perhaps overlooked, but in the Current climate is very much looked in to. I very much doubt the FA would put his 'suggestion' in writing & if he wont do that, hes probably fully aware that he would be suggesting that you break the law.

I cannot see why you would have problems securing a mortgage for less than 2/3rds of the value of the house. Thats normally something the lenders would be happy about. But Im presuming that the deeds for the house are going to be in your name too? Otherwise, you will not be able to get a mortgage.

Is the other family member staying in the house? Is that why you need a Buy to Let?

Good Luck. Hope it works out.