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Buy to Let Mortgage - Skipton - AAAHHHH
PierremontQuaker03
Posts: 345 Forumite
Hi, I am in the process of moving house and changing my current home to a Buy to Let. Everything seemed fine, until today.
I provided the valuation info and the likely rent pcm (I had a couple of letting agencies around and went with the conservative rental income).
An independant surveyor came round last week and today I have found out that he agreed with my house valuation but said that the pcm income would be £500, way short of the conservative £650 that I believe is easliy achievable.
There is a house down the street from me that is in far worse condition than mine and I have an extra bedroom and they have got £550 pcm.
Obviously this impacts me and the amount I can now borrow against my house.
I am going thru a broker and he said that he will query the rental valuation but he said the chances are that they will stick with the surveyors value. This is an absolute joke, I have paid fee's etc so really I can't pull out - and also it means if I am borrowing less against my house and I do indeed get the rental income I expect, it means I will make more profit from the BTL mortgage and therefore pay more tax.
Any advice on this - wonder if its best if I should go on an interest only mortgagr for a couple of years, to prove to Skipton that I can get the rent I am getting then at that point borrow more against my house and switch to a repayment mortgage. Hope this make sense - any advice would be much appreciated!
I provided the valuation info and the likely rent pcm (I had a couple of letting agencies around and went with the conservative rental income).
An independant surveyor came round last week and today I have found out that he agreed with my house valuation but said that the pcm income would be £500, way short of the conservative £650 that I believe is easliy achievable.
There is a house down the street from me that is in far worse condition than mine and I have an extra bedroom and they have got £550 pcm.
Obviously this impacts me and the amount I can now borrow against my house.
I am going thru a broker and he said that he will query the rental valuation but he said the chances are that they will stick with the surveyors value. This is an absolute joke, I have paid fee's etc so really I can't pull out - and also it means if I am borrowing less against my house and I do indeed get the rental income I expect, it means I will make more profit from the BTL mortgage and therefore pay more tax.
Any advice on this - wonder if its best if I should go on an interest only mortgagr for a couple of years, to prove to Skipton that I can get the rent I am getting then at that point borrow more against my house and switch to a repayment mortgage. Hope this make sense - any advice would be much appreciated!
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Comments
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Its not skipton its the valuer.
Ive never had any issues that couldnt be resolved with skipton - infact its the one lender i would happily recommend all day long due to the great service they offer.
Get the rental amounts over to your broker and have him get them over to skipton, they may agree or they may agree to meet somewhere down the middle. If you go on interest only will they offer you what you need? If so go on interest only and just overpay by as much as you can so atleast it will bring the balance down a little.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Perhaps the lower figure is to allow for void rental periods. On your figures would equate to around 2 months a year. Which is the normal guideline when assessing income on a BTL venture.0
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good point Thrugelmir, never took that into account!0
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