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As a mortgage broker specialising in the investment market, I am excited to share a new opportunity that could be a game-changer for UK property investors, especially those looking to reduce the upfront deposit / capital required.
We’re working closely with a lender who now offers long-term mortgage products for residential buy-to-let, semi-commercial, and full commercial properties, with the ability to lend up to 90% of the purchase price on genuine Below Market Value (BMV) transactions.
Please note that this product is available strictly on a case-by-case basis, and only to experienced investors targeting high-quality single assets or high quality property portfolios.
For residential Buy-to-Let (BTL), the minimum loan size is £1 million, which may be secured against a single property or a portfolio of properties.
For semi-commercial and fully commercial assets, the minimum loan size is £500,000.
What Does Below Market Value (BMV) Really Mean?
In simple terms, a BMV property is one that is being purchased for less than its true open market value.
For example:
- A property or portfolio valued at £1,000,000 by a RICS-qualified surveyor might be secured for just £800,000
- That £200,000 discount could be due to a motivated seller or a quick sale requirement
The key point: the purchase price is genuinely below what the open market would typically demand — and must be supported by an independent valuation carried out on behalf of the mortgage lender.
Important to Note:
If the purchase price is lower because the property requires refurbishment, a long-term mortgage may not be available. This is because, for a lender to approve a mortgage, the property’s condition must be deemed by the valuer as both liveable and suitable for letting. If this is not the case, a bridging loan would typically be required.
Lending Criteria for BMV Deals
For eligible BMV purchases, our lending partner can offer the following:
Up to 90% Loan-to-Value (LTV) of the Purchase Price
Or up to 75% LTV of the Market Value
The lower of the two values is used to calculate the loan.
What does this mean for you?
Let’s use an example:
- Market Value: £1,000,000
- Purchase Price: £800,000
- Loan Offered: 90% of £800,000 = £720,000
- Deposit Required: Just £80,000 (10% of the purchase price)
This is a great route for investors who want to minimise capital input while still acquiring high-potential assets. It can work particularly well for those looking to scale portfolios.
Property Types We Can Support
- Standard Buy-to-Let (BTL) properties
- Mixed-use / semi-commercial (e.g. shop with flats above)
- Full commercial properties (e.g. offices, warehouses, retail units)
Important Notes:
- The BMV must be genuine and provable via a formal valuation report.
- Funds for deposit and other costs must still be sourced and verifiable.
- Lending decisions remain subject to full underwriting and property due diligence.
- Available to experienced investors only, looking at high quality assets
How can Advocate Finance help?
If you’re actively looking at BMV opportunities or you’re already negotiating one, please get in touch. We can assess your deal and let you know what’s possible with this lender.
We provide a FREE assessment on all our services.
Please contact me directly for more information, or use the Get in Touch With Us Today feature at the bottom of this page.
