Problem with buy to let mortgage application

Leeky74

Hi everyone, have been reading these forums for a while and have got lots of useful information but this is my first post as I need some help.

We are in the process of applying for a buy to let mortgage with Skipton. The valuation has been done this week and although it agreed with the property value that we put in our application but it has reduced the amount of monthly rental income that the property is worth. We have tenants lined up to move in at the end of April who have agreed £650 per month rent and our agents have supplied these details to Skipton as part of our application and two identical properties in our street are currently being rented out for £650 per month. However because the valuation says maximum £600 a month for our property this is what Skipton are going with and have reduced the amount they are willing to lend as part of the mortgage.

Is there any way to try to get Skipton to look again at this valuation as we really think that the person that has carried out the valuation has got it wrong regarding the rental income?

Thrugelmir

Obtain a signed tenancy agreement to substantiate the rental income you will be receiving.

Leeky74

Have spoken to Skipton this afternoon and they are refusing to change their decision and go against the rental valuation even with the proof I can get from our lettings agent regarding actual rent our tenants will be paying! Absolutely ridiculous situation!

kingstreet

Unfortunately, the lender has to plan for the rent it thinks is achievable if it had to repossess, so it has to take its chosen surveyor's opinion.

A change of lender may be your best option, but if the valuation is "panelled" to the same surveyor, you may end up paying again for the same end result.

GMS

Not that I am suggesting for a minute you are wrong but from a lenders point of view all they have to rely on is the valuer. You could get an AST signed for £800 per month but if the rental for the area is deemed to be £600 then that is what the valuer will say.

As Kingstreet says you could try elsewhere but end up in the same situation. Perhaps look at a lender with a less strict rental assessment?