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Q re - mortgage LTV and house value...

Hi, we're in the process of buying a repo property. Its asking price is 135k we have had 120k accepted. Property was origionaly put on market in Jan at 155k.

We hae a 10% deposit so are lending 108k. Similar property's in the are in good living condition are being marketed around 150k/155k. The one we are buying isnt in a bad way just needs mainly cosmetic work.

Is it possible to wait maybe 12 months (depending on the state of the market) then try to re-mortgage (depending on early repayment charges) saying that property is worth 150k but only need to lend 108k-ish (75% LTV)?

Obviously we would only need to do this if we were going to find a better mortgage deal.

Comments

  • sdooley
    sdooley Posts: 918 Forumite
    Your estimate would need to be backed up by the bank's surveyor. If you think you can make a 35% annual gain in a falling market you are better at spotting bargains than most, and why wouldn't you sell then and re-invest in another ?
  • Thanks for replying. Re-investing is also something we would consider. We'll just see where we are in 12 months time....
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