buying for more than you're lending

DVardysShadow

baron777red wrote: »

hi


weve offered 100,000 and its been refused, so i was thinking of offering to pay the vendors agency, and solicitors fees, which would amount to about 3,000.

or if we were to offer 105,000 can i pay the vendor the extra 5,000 myself (through the solicitors, of course)?

or is there anything else we can do to get the house.

So you have the money to pay vendors fees or to pay them 5000. Why not just offer the money?

baron777red

hi purblebuzz,

our lender is coventry BS and they have said that the maximum they will give us, to port over, is 95,000,(which is what they originally lent us).

so i suppose whatever price we buy at we have to pay the difference,

they said if we need to borrow any more it had to be a completely new mortgage, so basically only 1 mortgage.

Doozergirl

I still don't get it. If you pay more fo rthe house but keep the mortgage then that's fine because your loan to value is getting better, not worse.

You should be able to buy a more expensive house as log as you pay the extra. Coventry shouldn't be interested in how much the house costs unless it's less than 95% LTV or the amount you want to borrow is reduced. If you have the extra cash or can find it, then go ahead and offer more. I can't think why you need to throw in sweeteners

superfran_uk

baron777red wrote: »

hi purblebuzz,

our lender is coventry BS and they have said that the maximum they will give us, to port over, is 95,000,(which is what they originally lent us).

so i suppose whatever price we buy at we have to pay the difference,

they said if we need to borrow any more it had to be a completely new mortgage, so basically only 1 mortgage.

But if you're paying the rest yourself, you aren't borrowing more. Surely you can buy whatever house you like, as long as you have the difference.

baron777red

thanks doozergirl, i'm probably confusing everyone, i dont know that much about mortgages and buying houses,

i suppose what i am trying to say is i can borrow a maxuminum of 95k on a maximum LTV of 95% and any extra is for me to find, so if i buy a house for £105,000, the lender pays 95,000 and i pay 10,000 and the LTV is then just over 90%.

superfran_uk

The more of your own money you put in, the less risk to the lender and so there should be absolutely no problem, they should encourage you to have as low LTV as possible particulalry at the moment - 95% mortgages no longer exist for most people.

purplebuzz

baron777red wrote: »

thanks doozergirl, i'm probably confusing everyone, i dont know that much about mortgages and buying houses,

i suppose what i am trying to say is i can borrow a maxuminum of 95k on a maximum LTV of 95% and any extra is for me to find, so if i buy a house for £105,000, the lender pays 95,000 and i pay 10,000 and the LTV is then just over 90%.

What you have described is correct, so if you have the 10k then you can offer 105k for the house you mentioned in your OP!

Blacksheep1979

baron777red wrote: »

thanks for the advice, but what if i wanted to offer 105,000, i dont think its a stupid offer, the house was originally marketed at 120,000 when it came on the market 2 months ago. then after a month an no offers it was reduced to 110,000.

I tell you what, I've got these beans, they're kind of magic and I'll let you have them for £200 - I was selling them at £240 two months ago so the £200 must be a bargain...

baron777red

just in reply to blacksheep, there are 2 other houses (very similar) for sale on the same street, at 125,000 and 140,000 and the house next door sold for 125,000 12 months ago.

ive done my homework and 110,000 for that area is a good price, but i also know that a house or anything for sale is only worth waht someone is willing to pay.