Investment Mortgages

[Digout]

Two queries: (i) What is the highest percentage investment mortgage available (e.g., 90% of the purcahse price) and (ii) if the market value is higher than the cost price (e.g.,a family member discount) can the mortgage loan be in reference to the market value rather than the cost price?

 

[Digout]

any update on this?

 

[JJ1310]

Not 100% sure on these answers but I know PTSB are offering 90% mortgages on investment properties and I believe this is the top level but am not 100% sure. As for the second part I would imagine that it will be the contract price and not the market value. Your solicitor will probably inform you better. I know of a house for sale for 360k with rent for the house in the region making between 1600-1800pm and letting agencies crying out for more of them to let. Make sure when you are investing you know your rent market as mentioned in last sentence

 

[ClubMan]

I'm pretty certain that the lender will always calculate the LTV based on the contract price and not any possibly higher market value. Also any taxes that might apply (e.g. CGT against the seller, SD against the buyer etc.) must be calculated on the fair market value and not any lower discounted price.