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ltv calculation
walshy.walsh
Posts: 62 Forumite
right, this might sound like a dumb question, BUT say we were going to look at a house on the market for £99k, and an offer of 90% (89k) of this value was accepted, would that make the mortgage if borrowing the full 89K, would that constitute a 100% mortgage, or a 90% mortgage?
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Comments
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The mortgage surveyor is normally told how much you are offering and makes a valuation on that sum, ie £89,000 so if your mortgage offer is 90% it would be on £89,000 and you would need to find the 10% or £8900 in cash.0
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The 'value' is generally taken to be the price that has been agreed, not what the vendor was originally asking. However, the mortgage company might not agree and could value the place at even less than your offer!0
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ok, cheers guys. guess that takes out the loophole then?0
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There was never a loophole in the first place!0
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walshy.walsh wrote: »ok, cheers guys. guess that takes out the loophole then?
What loophole?0 -
Like the name says it's a loan to value ratio - the value is what you pay, the loan is how much you borrow. Seriously wonder about some people some time.0
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Nice try.:D0
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Blacksheep1979 wrote: »Seriously wonder about some people some time.
i did realise that it might be silly ya know!!!!!!!!!!!walshy.walsh wrote: »right, this might sound like a dumb question0 -
Without a deposit, no house purchase. The days of 100% (and more) mortgages are gone, hopefully forever. Baaad idea.0
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