"Borrow" amount?

jamief

If a mortgage company says they will lend me £140,000, does that mean I can look at properties max price £140k, or max price £140k + my £12,000 deposit?

jamief

Sorry, I can probably make that clearer.

Im looking at 95% LTV mortgages.

If a mortgage company says they will lend me £140,000, is that the maximum THEY will lend me, or is that the maximum they will lend me + my 5% deposit (in effect, they wont lend me £140k, rather they would only lend me 95% of £140k??

Debt_Free_Chick

It's a bit difficult to be sure, without seeing the letter or hearing what they said. However, if this is a mortgage offer "in principle" then it would be the amount they are prepared to lend you, in addition to the deposit you have.

So if they are willing to lend £140k, the maximum purchase price would be £147,368. So you would need £7,368 PLUS enough to cover all your fees etc.

jamief

Thanks, that what I was thinking. Would make sense, because say I had a huge deposit (£130k for example), then in effect that would be them saying they would only lend me £10k. Will clear it up with the broker, just haven't had a chance to speak to him today