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Buy-to-let application advice needed please
ketsbaia
Posts: 1 Newbie
As part of the application for a buy-to-let mortgage the lender has sent round a valuer to the property to assess the monthly rental income. He suggests a figure of £600 per month but the lender says they require an income of £685/month in order to lend us the required amount.
We have disputed this as I know it will achieve more than this (£700-£750) per month, as we did some research by placing a potential ad and had plenty of positive responses from potential tenants.
The lender says the only way we can prove this is by getting proof from local letting agents of similar properties in the area.
I have rang a few but there aren't many properties being rented out in the vicinity.
The bottom line is we wouldn't even be buying it if it only brings in £600/month. If however, the valuer is proved correct then we'll just be topping up the amount from our income but the lender does not accept this.
Can anyone offer advice on how to resolve this?
We have disputed this as I know it will achieve more than this (£700-£750) per month, as we did some research by placing a potential ad and had plenty of positive responses from potential tenants.
The lender says the only way we can prove this is by getting proof from local letting agents of similar properties in the area.
I have rang a few but there aren't many properties being rented out in the vicinity.
The bottom line is we wouldn't even be buying it if it only brings in £600/month. If however, the valuer is proved correct then we'll just be topping up the amount from our income but the lender does not accept this.
Can anyone offer advice on how to resolve this?
0
Comments
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You could give up on your get rich quick BTL scheme, as the numbers no longer add up, as the lender has stated...0
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You have answered your own question here.As part of the application for a buy-to-let mortgage the lender has sent round a valuer to the property to assess the monthly rental income. He suggests a figure of £600 per month but the lender says they require an income of £685/month in order to lend us the required amount.
We have disputed this as I know it will achieve more than this (£700-£750) per month, as we did some research by placing a potential ad and had plenty of positive responses from potential tenants.
The lender says the only way we can prove this is by getting proof from local letting agents of similar properties in the area.
I have rang a few but there aren't many properties being rented out in the vicinity.
The bottom line is we wouldn't even be buying it if it only brings in £600/month. If however, the valuer is proved correct then we'll just be topping up the amount from our income but the lender does not accept this.
Can anyone offer advice on how to resolve this?
I've been in this situation and the lender will accept values off local established letting agents, but if you can't get them they won't lend the money. They aren't going to rely on your figure to lend you £x00,000.A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
I can't see why the lender won't allow some of your income to top up if necessary. Unless you have limited income or it is already taken up by the value of your residential mortgage.
I had this issue of the valuer putting a lower rental value than we thought the place would get (and we were proved right in the end!)I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Why would you want to use your income to top up the BTL? Mid/long term it is impossible for house prices to rise from their current levels in real terms.0
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Why would you want to use your income to top up the BTL?
The OP isn't necessarily using his income to top up the BTL, he is saying he is prepared to in order to by pass the valuer assessing the rental income lower than he forecasts.
People buy second properties for all sorts of reasons other than making a quick buck.Mid/long term it is impossible for house prices to rise from their current levels in real terms.
You say, others disagree!I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
I can't see why the lender won't allow some of your income to top up if necessary. Unless you have limited income or it is already taken up by the value of your residential mortgage.
I had this issue of the valuer putting a lower rental value than we thought the place would get (and we were proved right in the end!)
Because the mortgage product has a 125% rent to mortgage condition in it or something along those lines. What's the point of such a condition if you can get round it by saying "but I can top it up out my income?"A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
The underwriters should be able to agree to the loan if they can see that you can afford it. The basic premis of gaining a mortgage is to satisfy the bank that you can afford the repayments. The rent to mortgage guidelines are just guidelines; if you can show that you can afford the repayments, the underwriters should agree to it. A bit like getting a residential mortgage where you can show a second income stream to supplement your salary or having a guarantor because the numbers don't add up. If the bank feels that you can afford the loan they have no reason not to lend.
When I applied for a BTL mortgage, due partly to the low rental valuation estimate, we appeared £25k short on the loan amount. The underwriters agreed to me having the full amount.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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