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mortgage ratio to deposit
cmgames
Posts: 91 Forumite
im confused how these work. say for example i want to buy house a for 100k and i can only borrow 25k i would only qualify for mortgage rates that require 25% deposit e.g. on a fixed rate. If i took out a 20 yr mortgage and was on fixed repayment rate for 10 years, i would have paid half the mortgage.
Does this mean if i was to choose a different mortgage I would still have to obtain a mortgage rate of 25% deposit? as have noticed that the best mortgage rates tend to be on a 40/60 deposit to mortgage ratio.
Does this mean if i was to choose a different mortgage I would still have to obtain a mortgage rate of 25% deposit? as have noticed that the best mortgage rates tend to be on a 40/60 deposit to mortgage ratio.
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Comments
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"say for example i want to buy house a for 100k and i can only borrow 15k"
You would require a deposit of 75k, if u could only borrow 25k!
house 100k
deposit of 75k
mortgage for 25k
GG pls note error corrected0 -
LTV = Loan to value
If you borrow £85K to buy a house for £100K you need £15K for the deposit. Your LTV is 85%.
For a 20 year £100K mortgage at 5% you will have paid off £38,036.66 after 10 years. It would take 12 years and 4 months to reduce the balance to £50K.
If you wanted to remortgage the house would be revalued. For example, if it was worth £100K and if you owed £62K you would need a 62% mortgage.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
"say for example i want to buy house a for 100k and i can only borrow 15k"
You would require a deposit of 75k, if u could only borrow 15k!
house 100k
deposit of 75k
mortgage for 15k
:rotfl:lol
And he his a financial adviser:eek:I am not a Mortgage AdviserYou should note that this site doesn't check my status as not being a Mortgage Adviser, so you need to take my word for it. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
confused 31
Does your pomposity prevent you from reading?
"GG pls note error corrected"0 -
confused 31
Does your pomposity prevent you from reading?
"GG pls note error corrected"
Well, almost. It should be £85K with an £15K mortgage.
Long day?You would require a deposit of 85k, if u could only borrow 15k!
house 100k
deposit of 85k
mortgage for 15k
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
GG What was asked?0
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I'm not sure :rotfl:
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
GG What was asked?
If jonny goes to the sweet shop and buys a 10 pence mix up and each sweet costs 1 pence, how many sweets will he have???:rotfl:I am not a Mortgage AdviserYou should note that this site doesn't check my status as not being a Mortgage Adviser, so you need to take my word for it. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Gorgeous_George wrote: »I'm not sure :rotfl:GG
:T ............so why the assumption you are right & i am wrong?0 -
:T ............so why the assumption you are right & i am wrong?
Just that he talked about only being able to borrow £15K but you 'corrected' it to £25K.
I guess it doesn't matter.
***pedant mode off***
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0
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