Landlords are seeing homes they are buying being down-valued by up to 50 per cent, industry experts are warning, amid concerns from lenders that they won’t make enough money from rent to cover their mortgage costs.

Down-valuations are where a mortgage lender’s valuer determines that a house is worth less than the price that its buyer and seller have agreed on.

This means the lender will not provide a mortgage for the agreed price, so the buyer either needs to fund the gap with a larger deposit, agree to buy the property for a lower amount, or pull out of the sale. New Feature

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Mortgage brokers have reported seeing a rise in down-valuations in the buy-to-let market over the past few months, but in recent weeks, some have said they have

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