Remortgage purpose: Buy out partner (maximum loan to value)
Indicates the maximum loan to value (LTV) a lender can accept where the remortgage purpose is to raise money to buy out a partner or other borrower. Typically this occurs where joint borrowers are going their separate ways and one borrower is buying out the other so they can remain in the property and retain ownership. One of the things that will need to fit a lenders policy (amongst others) is the max loan to value the lender will accept for this mortgage purpose.
For example a couple own a property which is currently worth £180,000 and they have an outstanding mortgage of £140,000. They have agreed that a fair figure is £17,500 so the person buying out will need to raise a mortgage of £157,500 in total which will give a loan to value of 87.5% (157,500 / 180,000 * 100).
Typically lenders round their LTVs to the nearest 5% (75%, 80%, 85%, 90%, 95%) so a maximum LTV of 90% would likely be needed.
What is Criteria Brain?
Criteria Brain is an online research tool for UK based mortgage advisors. Authorized advisors are able to research mortgage lenders criteria in granular detail across many lenders. Without a system like this, the advisors research phase can often take many hours and for complex cases, days, which results in frustrating delays to customers. Criteria Brain fixes this problem by providing a platform which lenders can upload their rules to, in a format that allows advisors to extract the precise information they need in great detail and very quickly. The information contained within Criteria Brain is for advisor use only but by completing the simple form, you could be speaking to an advisor who can answer this question and many more.