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  • FIRST POST
    • DanStack
    • By DanStack 4th Feb 18, 8:10 AM
    • 8Posts
    • 1Thanks
    DanStack
    This could be a stupid question..?
    • #1
    • 4th Feb 18, 8:10 AM
    This could be a stupid question..? 4th Feb 18 at 8:10 AM
    Sorry in advance if this is a daft question, but I can't find a answer online...

    Were currently living in a rental property, which is currently valued at £165k.

    We can buy it for £140k... So my question is could I get a £140k mortgage, against at the £165k property, and not need to pay any deposit?

    Or will a lender want to see my £25k "go in the pot"...?
Page 1
    • littleredhen
    • By littleredhen 4th Feb 18, 8:12 AM
    • 3,076 Posts
    • 3,316 Thanks
    littleredhen
    • #2
    • 4th Feb 18, 8:12 AM
    • #2
    • 4th Feb 18, 8:12 AM
    you would have to apply for a 100% mortgage
    The mind is like a parachute. It doesn’t work unless it’s open.

    A winner listens, a loser just waits until it is their turn to talk
    • amnblog
    • By amnblog 4th Feb 18, 9:02 AM
    • 10,281 Posts
    • 4,054 Thanks
    amnblog
    • #3
    • 4th Feb 18, 9:02 AM
    • #3
    • 4th Feb 18, 9:02 AM
    If your landlord wants to sell to you and the pricing is definitely under value, this is possible.

    Speak to a Broker.
    Last edited by amnblog; 04-02-2018 at 12:52 PM.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • kingstreet
    • By kingstreet 4th Feb 18, 10:38 AM
    • 32,891 Posts
    • 17,725 Thanks
    kingstreet
    • #4
    • 4th Feb 18, 10:38 AM
    • #4
    • 4th Feb 18, 10:38 AM
    you would have to apply for a 100% mortgage
    Originally posted by littleredhen
    That's not the case. Similarly to buying at undervalue from a relative there are lenders who take the price reduction as deposit when a tenant purchases from landlord.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • DanStack
    • By DanStack 4th Feb 18, 3:02 PM
    • 8 Posts
    • 1 Thanks
    DanStack
    • #5
    • 4th Feb 18, 3:02 PM
    • #5
    • 4th Feb 18, 3:02 PM
    Thanks for the reply guys, will speak to a broker and see how we go...
    • Thrugelmir
    • By Thrugelmir 4th Feb 18, 4:06 PM
    • 57,453 Posts
    • 50,745 Thanks
    Thrugelmir
    • #6
    • 4th Feb 18, 4:06 PM
    • #6
    • 4th Feb 18, 4:06 PM
    Were currently living in a rental property, which is currently valued at £165k.
    Originally posted by DanStack
    Valued by whom? The landlord. Valuations are subjective.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • DanStack
    • By DanStack 5th Feb 18, 1:53 PM
    • 8 Posts
    • 1 Thanks
    DanStack
    • #7
    • 5th Feb 18, 1:53 PM
    • #7
    • 5th Feb 18, 1:53 PM
    Valued by whom? The landlord. Valuations are subjective.
    Originally posted by Thrugelmir
    I had and independent valuation done, after also seeing it valued at £160k on Zoopla.
    • pennystretcher
    • By pennystretcher 5th Feb 18, 4:43 PM
    • 352 Posts
    • 1,385 Thanks
    pennystretcher
    • #8
    • 5th Feb 18, 4:43 PM
    • #8
    • 5th Feb 18, 4:43 PM
    Take the Zoopla estimates with a pinch a salt especially where the purchases were during housing bubble before it burst - it's better to compare recently sold houses in your area based on similar size/age/condition..
    MFW Feb 2018 £90 - yes, £90!!!!! (almost there!!!)
    • kingstreet
    • By kingstreet 5th Feb 18, 5:44 PM
    • 32,891 Posts
    • 17,725 Thanks
    kingstreet
    • #9
    • 5th Feb 18, 5:44 PM
    • #9
    • 5th Feb 18, 5:44 PM
    I had an independent valuation done
    Originally posted by DanStack
    By whom? Shiny suited lister for national EA, or grizzled M&S suit-wearing RICS chartered surveyor?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • enthusiasticsaver
    • By enthusiasticsaver 5th Feb 18, 10:17 PM
    • 5,702 Posts
    • 11,261 Thanks
    enthusiasticsaver
    Most high street lenders use the lower of valuation or purchase price so you would need to put up a deposit. Some brokers may know of lenders who don't do that if you are getting a property at less than valuation price.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
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