Mortgage above value of house.

MRCROCODILE

I'm looking to buy a house with a home report value of £100,000. I estimate that it requires around £10,000 of renovations. So I would like to put down £22,000 deposit (20% of £110,000) and borrow the remaining £88,000.

Would I be eligible to get an 80% LTV mortgage under these circumstances, or would I need to take a ~90% LTV mortgage (putting down just £12,000 as deposit on the £100,000 purchase) and spend £10,000 of my own money on the renovations?

Thanks.

CloudCuckooLand

The lender will only lend the balance of £100k, from whatever deposit you choose to put down.

They will not consider the potential value.

MRCROCODILE

Thanks for the swift reply.

One more question: let's say the house was valued at £100,000 but I managed to buy it for £90,000. Would they lend me £100,000?

VIGILANT22

why would they give you more money than the house was worth!!!!

MRCROCODILE

VIGILANT22 wrote: »

why would they give you more money than the house was worth!!!!

I don't know - you tell me! I posted to find out if a bank would a bank take potential value into account. However, CloudCuckooLand has already answered my question, so please stop trolling.

VIGILANT22

MRCROCODILE wrote: »

I don't know - you tell me! I posted to find out if a bank would a bank take potential value into account. However, CloudCuckooLand has already answered my question, so please stop trolling.

trollung ..huh! ...if you dont like the reply...dont ask questions that have been answered..doh!.....just reflect on yr question ..it's like me asking I want/need a 10k bank loan do you think they will through in an extra 10K.......

beecher2

MRCROCODILE wrote: »

Thanks for the swift reply.

One more question: let's say the house was valued at £100,000 but I managed to buy it for £90,000. Would they lend me £100,000?

No, in that case they'd take the value of the house as £90,000

MRCROCODILE

VIGILANT22 wrote: »

trollung ..huh! ...if you dont like the reply...dont ask questions that have been answered..doh!.....just reflect on yr question ..it's like me asking I want/need a 10k bank loan do you think they will through in an extra 10K.......

I can't understand any of what you've typed. Sorry.

beecher2 wrote: »

No, in that case they'd take the value of the house as £90,000

Thanks for the reply. I think I've got all my answers now.

Cheers.

brit1234

MRCROCODILE wrote: »

I don't know - you tell me! I posted to find out if a bank would a bank take potential value into account. However, CloudCuckooLand has already answered my question, so please stop trolling.

Mr angry there, he was only answering the question you put.

Also if you declare that the sale price is higher than the actual bought price to the mortgage lender you are commiting fraud by false representation. This is a imprisonable offence and you will go to crown court rather than magistrates.

Wutang_2

MRCROCODILE wrote: »

please stop trolling.

Says the man wanting a bank to lend more than the property is worth! Like your style!!