Buy to Let Mortgage Max - Calculated on Value or Purchase Price?

Hi folks, first time poster, great site. Hope I've done this right.

My question concerns "Buy to Let" Mortgages.

I paid 20K deposit on an investment property (purchase price 295K) about 15 months ago. Due to close in a couple of months so sorting out the mortgage now. In the interim it has appreciated to about 360K value (Phase 2/3 in the same development).

I know that lenders offer to lend a certain percentage (LTV) and am looking to minimise amount I have to provide for purchase, so my question is will a lender base their maximum Loan (say 85%) on the CURRENT VALUE or on the actual purchase price?

Thanks.

Re: Buy to Let Mortgage Max - Calculated on Value or Purchase Price??

I think I tried this 2yrs ago and they only gave me the 85% of the purchase price.

Lenders lend on the lower of the valuation or purchase price.

Sarah

www.rea.ie

I got a buy to let mortgage in Aug with EBS, they give 90% to first time investors

Thanks for the helpful replies, leading on from them could I ask if anyone is aware whether Bank of Scotland (or anyone else) will offer a loan based on a multiple of Rental Income? And if so, what is that multiple? I thought I spotted this on their Website a while back but I can't find it again now ...

(I'm keen to keep my Investment property as separate as possible from the family home).