Even if the borrower’s long term ability is sufficient only to service a debt equivalent to 75 per cent of the property’s estimated current market value, the lender should be able to make a proposal that both protects the lender’s capital and leaves the borrower in the home.
Repossession and voluntary surrender – BTL As far as buy-to-let (investment) properties are concerned, voluntary surrender at a current valuation can make sense for a stressed borrower having difficulty in servicing the loan – for example if the rental income is nil or smaller than the interest outlay on that part of the loan corresponding to the current market value of the property.