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Property valuation or rental income less than anticipated? Why it’s not the end of a case


Cieron - Lending Consultant

Published 17.10.2018

As one of the UK’s leading specialist lenders, we’re always looking to lend and help customers get the mortgage or loan size they want.

There are occasions, however, when a property valuation comes back less than anticipated or the rental income isn’t as much as expected. When this happens, we have to reassess the application to reflect these changes which can mean the loan may be lower than the amount originally applied for.

Should this happen to your customer, don’t despair – there are other options available. We’ll review an application to ensure you have all the facts on our products and policy before you go back to your customer – this means you can advise them on the best course of action.

Let me give you an example of a recent case where we were able to offer the customer the loan size they wanted, even after it was initially reduced due to a lower than anticipated market valuation.

The customer wanted to borrow around £120,000 to purchase a new buy to let property with a 2 year Fixed rate mortgage. However, as the rental figure was less than anticipated, the loan had to be adjusted down to less than £99,000.

During a review of the case and discussion with the broker, they explained that the applicant needed closer to £120,000. We identified that the customer had sufficient equity in their portfolio if they selected one of our 5 year Fixed rate mortgages. The broker revisited this with their customer who opted to choose the longer term product in order to secure the loan size they wanted.

We’ll do our best to make sure you’ve got all the information you need to discuss all the options available to your customer and help them make a fully informed decision.

To find out how we can help your customer get the loan size they want, speak with your Business Development Manager or call a member of our dedicated intermediary support team on 0800 116 4385.


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