Mortgage Valuation Question

carpediemspirit

Hello Lovely People,

I wonder if anybody could help me. I own a property which I am trying to re-mortgage to Natwest on a BTL. Here are the key facts:

Mortgage Outstanding: £159,000
Surveyor Property Value: £220,000 (thought it was £230,000)
Remortgage Value: £170,000 (want to take out £10,000 to put towards a new residential property)
Rental Income: £975 a month

When I started the mortgage process via countrywide, it was on the assumption the property was valued at £230,000. The Natwest valuer has said it is worth £220,000

What are my options ? will I have to find a new product ? or are they still likely to go ahead with the deal if I ditch the extra £10k borrowing ?

Any help would be appreciated.

kingstreet

You'll have to reduce the loan to 75% of £220k, £165k as NatWest max is 75%.

It's in on rental income.

Product will remain as application.

Countrywide? Really?

carpediemspirit

Thank you,

Do you think I could just forget about the extra borrowing and remortgage on the basis of my outstanding balance of £159,000 ? would this be accepted by Natwest ? as it seems pointless to take extra borrowing if it is for £6k.

kingstreet

Nothing to stop you reducing the loan amount. You are going to have to do it either way, as you're currently over the 75% limit.

carpediemspirit

what do you mean over 75% limit ?

kingstreet

NatWest max loan on BTL is 75%.

Your property value is £220,000 so the maximum loan is 75% of that, or £165,000.

I you originally applied for £170,000 you are going to have to reduce the loan amount to £165,000 or less.