Mortgage based on valuation

theGrinch

can someone be kind enough to advise me of lenders that
will lend 85% based on valuation for BTL purposes.

Conrad

theGrinch wrote:

can someone be kind enough to advise me of lenders that
will lend 85% based on valuation for BTL purposes.

Bristol & West, Bank Of Ireland, BM Solutions, Mortgage Express.

Care is needed with ensuring 'your' rental expectations fit with the figure the valuer will assume. The valuer will be aware of a tough over - supplied rental sector. He will base his decisions on comparisons with similar properties that have been let in the last couple of months NOT those contracts agreed a while ago when rentals were higher.

Ive sold my entire B2L portfolio as I cant see any growth on the horizon and at the same time rents are dropping and rental voids increasing. Frankly my money is better invested elsewhere ufn. The B2L bandwaggon is now too popular for my investment tastes.

Fred

Conrad wrote:

Bristol & West, Bank Of Ireland, BM Solutions, Mortgage Express.

Care is needed with ensuring 'your' rental expectations fit with the figure the valuer will assume. The valuer will be aware of a tough over - supplied rental sector. He will base his decisions on comparisons with similar properties that have been let in the last couple of months NOT those contracts agreed a while ago when rentals were higher.

Ive sold my entire B2L portfolio as I cant see any growth on the horizon and at the same time rents are dropping and rental voids increasing. Frankly my money is better invested elsewhere ufn. The B2L bandwaggon is now too popular for my investment tastes.

All this does depend on location (in the country, not in London only that is) as rents in the North are going up I believe. Whether there is any capital gain to be made in the long term is of course impossible to predict, new pension regulation from next year might bring interesting dynamics. But market assessment was not asked for I believe, hence:

You will need to know what you can achieve with the rent - never believe other people's claims as so many people just dream up these figures. If you can produce a signed contract all the better. The valuers can afford to play it safely as they have nothing to loose/gain from being more risky with their valuation. With B2L mortgages, it is usually the customer who pays the fees and the banks who instruct the valuation - obvious who the valuer sides with.

Who does the letting for you - yourself? Not good - maybe sign up with an agent who confirms the rental potential just to faciliate the mortgage application. At least get a letting agent to quote you a potential rent & fee, just so that you have some basis to work on. Maybe even go to your (high street) bank for the mortgage - they are usually less risk averse than smaller building societies and can offer decent deals at times.