Let to buy valuations

kw77

We are currently looking to purchase a new home and will be changing our current property, which has approx 60% equity, to a let to buy.
Unfortunately our offer was turned down on the new house and any higher offer we put in is dependant on how much we can release on our 75% let to buy. We can raise the deposit, but will need money for a complete scheme of renovation, which a higher offer will eat up.
Can anyone advise me on how the Let to Buy mortgage valuation will reflect on the market value? I have heard that they are often over valued.
Thanks

Thrugelmir

The rental income on the Let to Buy will be a deciding factor. As an example the rent will need to be a 125% of the interest charge on the mortgage. Based on an interest rate of say 6.75%. The rate used will higher than the actual rate you are applying for. This is in effect to stress test affordability.

Why would the Let to buy be overvalued? More likely undervalued.

holly_hobby

Just a small note to say its a "buy to let" mortgage you're after (let to buy is when you are securing the mge on the property you intend to live in as your main residence)

Hollly