Loan to Value

[MrShed]

Sorry for my ignorance, but what does "Loan To Value" mean?

And as a side issue, has anyone ever dealt with Landmark Finance before?
http://www.landmarkfinance.co.uk/

Or a more general question. I am looking to perhaps finance buying a property(for renovation and quick sale purposes), but have no capital of my own to invest. Can anyone recommend a provider of 100% mortgages? For these kind of circumstances?

[dazalock]

Simply the % amount the bank is going to lend based on the valuers price of the property.

[Poppy]

For example:

Valuation = £100,000
Loan = £85,000

Therefore loan to value is 85%.

It also follows that the deposit is 15% of the valuation or £15,000.

[MrShed]

I getcha :D thanks.

But, with the deposit issue. If you purchase a property less than the market value, this will change yes? So for example, using your example poppy. If the value was £100000 but you were getting it for £90,000....the deposit would be £5000 yes?

And can I just in advance, if anyone replies to my last question....I realise it is a questionable idea whether to actually invest when you have no capital of your own, so please dont point it out again :D I'm not sure if I'm gunna do it yet lol, but I do realise that.

[Yingtan]

Generally the LTV adjusts with the purchase price. Ie you would have to borrow 85% of £90K = £76.5K. Therefore your deposit would be £13.5K.

However there are legal ways round this. You can borrow against valuation as oppose to purchase price if the deal is structured correctly. In your example of property worth £100K. On an 85% mortgage you would then only have to raise £5K plus costs.

[pete]

Hi,
I know of a client of my brother who borrowed 100% on a similar project to the one that you are thinking about. His name is chris 07751832116.
regards
peter

[mrtoca]

Please see my reply to one of several similar post from Jonny5 at http://www.landlordzone.co.uk/forums...ed=1#post18265 (http://www.landlordzone.co.uk/forums/showthread.php?p=18265&posted=1#post18265)

[mrtoca]

Hi Jonny5,

I've posted a reply here http://www.landlordzone.co.uk/forums/showthread.php?p=18876#post18876

[mrtoca]

I see Jonny5's account has been deleted. He was posting here as a customer of Capital Growth UK. Please see http://www.ukpad.com/forum/viewtopic.php?t=962 where he is posting saying he works for Capital Growth UK...

[JamesGovan]

Having seen the discussion in this forum, the following may be of interest.

Active Securities provide fast bridging finance solutions for investment property purchases and lend based upon the market value of the property, not purchase price. This allows you to potentially borrow up to 100% of the purchase price.

- Funding up to 70% of market value *
- No minimum financing term
- Loans from £30,000 upwards
- No upfront fees or hidden charges
- Flexible repayment solutions
- First / second charge
* Subject to criteria

Please contact me on 020 7038 3500 to discuss your financing requirements, or visit our website at www.activesecurities.com


Regards,
James Govan
www.activesecurities.com

Your home may be repossessed if you do not keep up repayments on your mortgage.