....and not sure where to go. Let me explain.
I have a property on consent to let and the fixed term is up in May. I'm in a position to move it onto a buy to let. There are two deals I have my eye on, one is an 80% and one is a 75%. Problem is a lot depends on the valuation of the property. I have a figure in mind of 115,000 which is what I paid for it 2 years ago. This means for the 80% I need to pay off 5,000, for the 75% I need to pay off 8,000.
Obviously I will need to pay a booking fee and survey but until I know the valuation I dont know which product to apply for. The easy option would be to go for the 80%. The 75% is a much better interest rate but I would need to save a bit longer, plus if I dont get a favourable valuation i.e. it comes back at 112,00 for example I'm then stuffed and wouldnt be able to proceed.
What would people suggest in this situation? If I go for the 75% and the valuation is unfavourable would I be allowed to then switch to the 80% without further cost?
Has anyone else been in this situation where an unkown house value is causing headaches as to which way to proceed?
Any guidance much appreciated.
I have a property on consent to let and the fixed term is up in May. I'm in a position to move it onto a buy to let. There are two deals I have my eye on, one is an 80% and one is a 75%. Problem is a lot depends on the valuation of the property. I have a figure in mind of 115,000 which is what I paid for it 2 years ago. This means for the 80% I need to pay off 5,000, for the 75% I need to pay off 8,000.
Obviously I will need to pay a booking fee and survey but until I know the valuation I dont know which product to apply for. The easy option would be to go for the 80%. The 75% is a much better interest rate but I would need to save a bit longer, plus if I dont get a favourable valuation i.e. it comes back at 112,00 for example I'm then stuffed and wouldnt be able to proceed.
What would people suggest in this situation? If I go for the 75% and the valuation is unfavourable would I be allowed to then switch to the 80% without further cost?
Has anyone else been in this situation where an unkown house value is causing headaches as to which way to proceed?
Any guidance much appreciated.