BTL - Banks not lending on city centre flats

KennyH1

I have had 2 BTL mortgages turned down following valuation surveys because the flat does not meet the banks requirement as it may be limited to investors rather than residential purchasers in the event of the bank re-possessing the property.


Both valuations have said the flat is worth the mortgage value and will support the rental income and we have the 25% deposit yet they wont lend.


Has anyone recently had a BTL mortgage accepted on a city centre flat and if yes with which provider?

sebadee

Perhaps the Banks have realised BTL mortgages are too risky, with the on-coming tax changes and can see a lot of BTL investments going south when the times change.

One thing, each turn down marks a record on your credit file, so be careful before applying to much.

boliston

KennyH1 wrote: »

I have had 2 BTL mortgages turned down following valuation surveys because the flat does not meet the banks requirement as it may be limited to investors rather than residential purchasers in the event of the bank re-possessing the property.


Both valuations have said the flat is worth the mortgage value and will support the rental income and we have the 25% deposit yet they wont lend.


Has anyone recently had a BTL mortgage accepted on a city centre flat and if yes with which provider?

Surely the type of buyer who wants a flat will mainly want to be in a city centre rather than a suburb? The type of person who prefers a suburb will probably prefer a house.

lessonlearned

Banks have been wary of flats for some time now, on both residential and BTL mortgages, even before the tax changes.

In many areas there has been an over supply of flats, with falling prices and properties remaining unsold for months or even years.

Lyncroft

According to RM in the SW8 postcode there are 1790 properties on the market. In May, 31 were sold. Strange world.

anselld

You would be best talking to a broker who should know each lenders detailed requirements before you apply or spend money on valuations.

Some lenders have problems with specific things, eg flats above shops, flats above or even next door to fast food outlets, blocks higher than three stories, flats without the "correct" freehold/management structure, certain types of lease, short leases, etc, etc. You just have to be selective who you apply to.