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    • Glover1862
    • By Glover1862 10th Jan 18, 12:24 AM
    • 272Posts
    • 133Thanks
    Glover1862
    BTL indexed valuation
    • #1
    • 10th Jan 18, 12:24 AM
    BTL indexed valuation 10th Jan 18 at 12:24 AM
    I'm currently at 45% LTV with a BLT, I was thinking of remortgaging to 75% and using the extra funds to buy another BTL, again at 75% LTV, both I/O.

    To reduce the risk of a price drop or change in salary I thought I'd be able to product switch, I know they don't do another credit assessment but they do a index linked valuation, if the price drops and the LTV goes over 75%, are the likely to refuse the switch and offer svr only???

    Worth considering for anyone going close to max LTV, I assume the same applies to residential loans, particularly to those at 90% and above.
Page 1
    • YHM
    • By YHM 10th Jan 18, 9:19 AM
    • 537 Posts
    • 198 Thanks
    YHM
    • #2
    • 10th Jan 18, 9:19 AM
    • #2
    • 10th Jan 18, 9:19 AM
    You cannot do a product switch and remortgage at the same time.

    If you are wanting to release equity out of your BTL, you will need to apply for it fully. I cannot see a lender doing an indexed valuation, more so, a full valuation.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, 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
    • Glover1862
    • By Glover1862 10th Jan 18, 9:45 AM
    • 272 Posts
    • 133 Thanks
    Glover1862
    • #3
    • 10th Jan 18, 9:45 AM
    • #3
    • 10th Jan 18, 9:45 AM
    Thanks, yes, i'll be doing the re-mortgage first with a full application, taking my LTV from 50% to 75%, I'll then buy the other BLT, again doing a separate application most likely with a different lender to the re-mortgage.

    As of now both properties will be at 75% LTV, practically the max for BTL. My question relates to values dropping in say 2 years time when the fixes end and I come to re-mortgage again. I was hoping worst case would be a product switch, I understood that no financial checks or valuations were done unless requested, however I noticed that lenders will use index valuations on products switches which at the time could show less than 75%, in which case they'd put me on SVR or I paid the extra to bring it back to 75%. Is that how it works?
    Last edited by Glover1862; 10-01-2018 at 9:47 AM.
    • YHM
    • By YHM 10th Jan 18, 9:48 AM
    • 537 Posts
    • 198 Thanks
    YHM
    • #4
    • 10th Jan 18, 9:48 AM
    • #4
    • 10th Jan 18, 9:48 AM
    Yes in theory...

    Just remember a BLT is quite different to a BTL though....
    Last edited by YHM; 10-01-2018 at 9:48 AM. Reason: .
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, 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
    • Glover1862
    • By Glover1862 10th Jan 18, 10:06 AM
    • 272 Posts
    • 133 Thanks
    Glover1862
    • #5
    • 10th Jan 18, 10:06 AM
    • #5
    • 10th Jan 18, 10:06 AM
    Yes, one a bit cheaper than the other!

    Ah well, I was rather hoping with a product switch you simply change the product with minimum fuss if you're not borrowing extra or need advice, not such a safety blanket after all.
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