Thinking of moving.....

Johnnygb78

Hello,

My wife and I are thinking of moving - she has already seen a house she likes and my arm is being bent to get the finances sorted out quickly.

Just wanted to ask if anybody new if the LTV would be calculated on the Home Report Valuation or the price we actually pay for the property?

The house has been on the market for while and has just gone to a fixed price (£168k) although I think there may still be a deal to be done (£163k ish).

Here are the rough figures:
Home Report valuation = £175k
Fixed Price = £168k
Offer Price = £163k ish

Is the LTV based on the Home Report valuation of £175k meaning a maximum mortgage of £157.5k (175k*90%)? Also, if the seller accepted a price of £163k would we have to pay a deposit of £5.5k (£163k-£157.5k) or would the LTV be calculated as £163k * 90%, meaning a deposit of £16.3k rather than £5.5k?

Any advice would be helpful.

beecher

The LTV is based on whichever is lower - the valuation, or the price paid. If you pay £163k, that's what the LTV will be based on and you'd have to pay a deposit of £16,300 in order to have an LTV of 90%

maninthestreet

It's the lower of either your offer, or the value stated in the survey you commission. Where has this 'Home Report valuation' figure come from - is it the HIP ???

Johnnygb78

In Scotland our version of the HIP is called a Home Report, it contains a Single Survey which gives sellers detailed information about the condition and value of a home before it is marketed for sale. It also gives buyers better information about the condition and value of a home before they make an offer to purchase.