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Mortgage deposit if buying under market value
LuW
Posts: 1 Newbie
If you are lucky enough to be offered a house at lower than market value (eg by a relative as you are a struggling first time buyer), do you still need to have a deposit to get a mortgage or would the difference in market rate and purchase price suffice as a 'deposit'? Any suggestions?
0
Comments
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Mortgage companies value the house at market value or the offer price, whichever is the lower. So you will always need a cash deposit.
Technically, whatever the sale price is is the market value!0 -
I don't think that is strictly true - if you are upfront with some of the bigger high street names then they may well be prepared to consider this. I have had Nationwide lending more than 100% of purchase price in the past when the loan to value ratio was a lot lower. maybe times have changed but if it is a genuine family "gift" and the lender's surveyor is happy that the property is worth more then I would have thought it is possible.
Dangerous however to use a "clever" broker who tells the lender something different form the truth - it can rebound on you.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0
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