BMV mortgage

crisp

hello, I have had an offer of £181k accepted on a property valued by 3 estate agents on average at £230k. The vendor is facing repossession and wants to sell to clear his mortgage.

Are there any LTV mortgages out there which will take the valuation over the purchase price into account when lending? I have been told there are such BTL products.

My intention is to buy and resale.

Can any mortgage brokers help?

AndrewSmith

A mortgage is generally based on either the valuation or purchase price of the property whichever is the lower. Even if it is BTS BTL or BMV.

silvercar

over on singingpig.co.uk people are doing this frequently. I think the way they do it is to get a (very) short term loan to buy the place (with no redemption penalties). They then, almost immediately, remortgage as the remortgage will be based on market value rather than a purchase price.

You have to be careful of set up costs and fees.

AndrewSmith

This is the only way round it that I can think of.