LTV calc: Lender valuation or purchase price?

herbiesjp

Those are great figures, and your own deposit saved is a good deposit as well.

Just so you are aware - you are just over 65% LTV. If you can keep the LTV at 65% you could potentially get slightly better rates with some lenders.

adam_rbts

Yeh the numbers look pretty favourable on paper.. still a scary mortgage though!!

Still, it's a great house in a great location and perfect for bringing up a family.. sometimes you just have grab opportunities when they come knocking..

thanks for the advice everyone..

bobins

Hi there,

When I bought my first property in October 2008 I paid £95,000 at auction and the bank actually valued the property at £145,000. The LTV in my case was based on the £145,000 and NOT what I managed to buy the property for!

I cant offer any more advice other what actually happened in my situation.

My lender is Halifax - I also bank with them.

Many Thanks.

adam_rbts

Just as a continuation..

My mortgage advisor is still insisting that the LTV is always based on the purchase price, not the value.
So I've contacted a couple of lenders by phone (Natwest and Woolich) and they agree with my advisor. The Natwest guy quoted "If the house was worth £1m and you paid £50k then the LTV would be based on the £50k purchase price."

Seems a bit backwards to me..

Does anyone who has had experience in these types of transaction recall which lenders agreed that the LTV was based on the value..?

thanks again

bobins

adam_rbts wrote: »

Just as a continuation..

My mortgage advisor is still insisting that the LTV is always based on the purchase price, not the value.
So I've contacted a couple of lenders by phone (Natwest and Woolich) and they agree with my advisor. The Natwest guy quoted "If the house was worth £1m and you paid £50k then the LTV would be based on the £50k purchase price."

Seems a bit backwards to me..

Does anyone who has had experience in these types of transaction recall which lenders agreed that the LTV was based on the value..?

thanks again

Hi there,

My Mortgage is with Halifax and my LTV was calculated on what the Halifax valued the property at after the purchase and not the amount it was purchased for!

Maybe try the Halifax?