House value v deposit

pressedapple

Hi!

We are keen to buy our first house. Have found one we liked and as it's been on the market since before the Home Buyers Report Scheme came in, we've had our own survey done on the property.

It's come back at £220,000 and the property price which we've had accepted is £175,000.

I wondered, could this difference in price (over 20%) be taken into consideration and work as the 'deposit' so that we don't have to find so much ourselves?

i.e. Our mortgage lender wants a minimum of 10% deposit. If we went for this deal, would we get away with not putting any money down ourselves?

Thank you x

beecher2

No you wouldn't as it is the £175,000 which will be used for LTV purposes.

pressedapple

Pooh! Don't these guys want to do ANYTHING to help us get on the property ladder?? It doesn't make sense.

LilacPixie

surely being prepared to lend you 90% of 175k is *SOMETHING*

VIGILANT22

pressedapple wrote: »

Pooh! Don't these guys want to do ANYTHING to help us get on the property ladder?? It doesn't make sense.

WHAT?.........Paying more for a house than what it is worth!..:rotfl:

CLAPTON

infact the mortgage company will probably value the property at 165,000

TrickyDicky

pressedapple wrote: »

Pooh! Don't these guys want to do ANYTHING to help us get on the property ladder?? It doesn't make sense.

Why should people help you? surely the best thing you can do is save more cash, and the lender will help you out by lending you the rest?

blueberrypie

pressedapple wrote: »

Pooh! Don't these guys want to do ANYTHING to help us get on the property ladder?? It doesn't make sense.

It's not very long ago that lenders were doing lots of things to help people get on the property ladder - like offering 125% mortgages, and allowing people to borrow even if they couldn't prove their income, etc.

Now a lot of the people who took those opportunities are in significant negative equity. Some of them are struggling with mortgage payments they can't afford, but are unable to sell their properties because they would have to pay off the outstanding mortgage and they can't raise enough from the sale to do that either.

I'm wondering why anyone would sell their property for £45000 less than it was worth. Properties are only worth whatever they can sell for. If they're accepting your £175k, it means that nobody else is willing to pay more.