LTV question

Technaut

hi folks,

say I want to buy a house on the market for £80k, what would happen if I got a survey complete and it came back saying the house was worth £100k -but an offer was accepted at £80k.

Would this mean that I would be able to get an 80% ltv mortgage for £80k and not have to pay any deposit??

Sorry if this seems a bit dumb but its been puzzling me the past couple of hours

beecher

No, to have an LTV of 80%, you'd have a 64k mortgage and have to come up with 16k yourself

Robert_Sterling_3

If someone sells a house for £80,000 we must assume that £80,000 is what it is worth.

Otherwise everyone would say, if their house were worth X, my house is worth £X +£Y but you can have it for £X. Then if £Y was large enough everyone could get a 100% LTV.

This is also related to "The gifted deposit scheme" which I refer to as a "sharp practice". I do not say it is fraud. I have written about that topic i another post.