Loan to value - Buy to let

Buy to let market returns to normality – some lenders offer 75% Loan to value

Tuesday 12 May, 2020

Katherine Mumford, Mortgage Broker in Tottenham, North London reviews the buy to let mortgage market as some mortgage lenders start to offer 75% of loan to value on buy to lets.  

If you want a commercial mortgage call the Thomas Oliver mortgage broking team for mortgage advice on 01707 872000.

Commercial mortgages affected more by lockdown than residential mortgages

We have now been in lockdown for over 5 weeks and the impact of the lockdown on the mortgage market has been huge. This has had a bigger impact on commercial mortgages such as Buy to Let mortgages rather than residential mortgages as automated or desktop surveys were not very common for Buy to Let applications. We have seen that the residential mortgage market managed to make significant adjustments very quickly, but this has not happened in the Buy to Let mortgage market. One of the main lenders in Buy to Let mortgages, The Mortgage Works is still reporting time scales of four weeks to complete an assessment on a case to decide whether the property is suitable for an automated survey or not.

Buy to Let mortgage market returns to normality in May 2020

However, as of today the 29th of April 2020 it seems the Buy to Let mortgage market is starting to get back to some normality. Both BM Solutions and Coventry Building Society has  re-introduced products at 75% of loan to value with properties likely to be valued remotely. Coventry Building Society are allowing automated surveys on flats up to 50% of loan to value and for houses up to 75% loan to value, up to a maximum property price of £1 million. BM Solutions are reporting that 80% of their cases will have a remote valuation with a maximum property value of £750,000, or £1 million within London. In the circumstances where the mortgage lender is not able to do a remote valuation then a physical valuation will still have to take place which will cause a delay due to the lockdown. 

Katherine Mumford, Mortgage Broker in Tottenham, North London said: 

‘Our commercial clients are pleased that mortgage lenders are starting to adapt to lockdown, and this is definitely a major step in the right direction. Hopefully other major Buy to Let lenders will follow suit and re-assess their products and how they value properties in lockdown. At Thomas Oliver we recommend talking to a mortgage adviser if you are considering investing in property or have got a buy to let investment portfolio. Our qualified mortgage brokers can provide detailed mortgage advice on the Buy to Let rules and can offer mortgage advice on the types of product that will best suit your requirements. We can also review the mortgage market for commercial mortgage products. Our mortgage broking team has experience of offering mortgage advice for buy-to-let investors. We have a specialised investment knowledge and work with local solicitors to make sure the process runs smoothly. We work with you to provide a financial solution which works for you and benefits your property portfolio. In doing this we will consider your aims and ambitions rather than building a solution around your current buy to let portfolio.’

In Summary

If you are looking for a buy-to-let investment, we recommend that you contact one of our mortgage advisers who work with clients in North London and Hertfordshire. Our mortgage broking team is qualified to give commercial mortgage advice by reviewing your individual financial circumstances and your buy-to-let options.  Give our mortgage brokers in Goff’s Oak, Hertfordshire a call on 01707 872000 for a free initial consultation on buy-to-let investing.

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