Deposit Query

polly30

Im buying a second home and as such been told I need a 15% deposit to secure a second morgage. Im looking at a property valued at 210k which has an asking price of 195k, would the lender take the 15k equity into account and allow me to make up the difference in the deposit?

I have an appointment with my lender next week but just wondered if anyone knew?

thanks

RufusA

polly30 wrote: »

Im looking at a property valued at 210k which has an asking price of 195k, would the lender take the 15k equity into account and allow me to make up the difference in the deposit?

The value of the property is what it will sell for. The mortgage company will therefore take the lower of the purchase price, or valuation by their appointed surveyor.

Is this a new build perchance? In which case the mortgage valuation may be lower than the asking price and a lot lower than the builder's valuation.

HTH - Rufus.

polly30

Hi there, thanks for your reply. this isnt a new build the house is around 5 years old. the home report states the value is 210k but the owners need a quick sell and as such will accept 195k - 15k less than the value.

Do you know if this equity will be taken into account?