quick Q re mortgage offer Vs house price

youknowwho

Hi all,

Been offered a Mortgage for 100k, I have found the perfect house for 100k, will they company offering me the mortgage let me kave the full 100k so then I don't have to pay the deposit out my own money?

Robert_Sterling_3

No.........................................

_Andy_

No, you will need a deposit.Not sure why you've been househunting without a deposit to be honest.

opinions4u

youknowwho wrote: »

Been offered a Mortgage for 100k

No you haven't. A mortgage offer is a legal document that relates to a specific property. You may well have been told by a lender or broker that you're good for lending £100k to. Possibly via an agreement in principle.

I have found the perfect house for 100k, will they company offering me the mortgage let me kave the full 100k so then I don't have to pay the deposit out my own money?

No.

You will most likely need a 10% deposit and will do better rate wise if you can come up with 15%.

I don't think you had a proper conversation with whoever said you could borrow £100,000 though.

youknowwho

thank yo for your very helpful response. I have a deposit of 15k, but would be nice if I could have kept it for some home improvedments etc. I thought seeing as their offering me 100k anyway that they wouldn't need the deposit. So I will be rejecting their offer of 100k and taking 85k.

Robert_Sterling_3

Perhaps what they had in mind was that you could buy a house costing more than £100,000 e.g. £115,000 and you could get a £100,000 on it.

youknowwho

Sorry i dont rememeber anyone else being in the room with me when I had my appointment.

I HAVE been offered a mortgage for 100k, so i could buy a house for 115k with my 15 k deposit. but... i have found a house for 100k that is perfect so i will only have take 85k from the bank and give them my 15 k for deposit.

Trying_to_be_good

What opinions4u is saying is that Mortgage Offer (with a capital M and O) has a legal meaning, and you don't have a Mortgage Offer yet as that will be made on a specific property after all the survey and their legal/credit check etc stuff is done.

They have said they are willing to let you have (i.e. offer you, with a small O) up to £100,000 but will have a loan-to-value (LTV) max, the rest of which you make up with your deposit. Plus covering arrangement fees, legal costs etc as appropriate.