We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Buying House under market value and mortgages!
Comments
-
This is a thread full of miss-information !
Family gifted deposit :- A gift from a family member which is non-repayable. This may be in the form of cash towards (or all of) the deposit. It may also be part of a property. In the original posters question mum can indeed sell you a property, at say, 25% less than the market value. The mortgage will be based on the MARKET VALUE and you would therefore only need a 75% LTV mortgage. A proper "valuation for mortgage purposes" would be conducted as it is a purchase. Desktop valuations are predominantly for re-mortgages.
Vendor Gifted Deposit:- A discount of usually 5% given by the vendor. Most lenders do not now allow vendor gifted deposits.
Mathew. If you have seen an advisor and they are telling you that the mortgage is based on the reduced price to you, then they are completely wrong.0 -
Quite right, Leon. My mistake in even mentioning vendor gifted. I'll take it out.This is a thread full of miss-information !
Family gifted deposit :- A gift from a family member which is non-repayable. This may be in the form of cash towards (or all of) the deposit. It may also be part of a property. In the original posters question mum can indeed sell you a property, at say, 25% less than the market value. The mortgage will be based on the MARKET VALUE and you would therefore only need a 75% LTV mortgage. A proper "valuation for mortgage purposes" would be conducted as it is a purchase. Desktop valuations are predominantly for re-mortgages.
Vendor Gifted Deposit:- A discount of usually 5% given by the vendor. Most lenders do not now allow vendor gifted deposits.
Mathew. If you have seen an advisor and they are telling you that the mortgage is based on the reduced price to you, then they are completely wrong.
I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thanks.
So the LTV would be based on the market value? If this is the case if saves any requirement to remortgage as my LTV will be around 60%0 -
can't add anything of value to the post, but I too am in a similar situation. The info provided on here is fantastic - thanks to all for indirectly helping me
and hope all goes well for you mathew! Here to offer help and advice, and maybe take a little in return.
Whilst I am happy to share my knowledge, I am in no way a professional... I can not therefore accept responsibility for inaccurate info, I ask that you take professional advice rather than rely totally the info provided by myself :beer:0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.6K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.4K Work, Benefits & Business
- 604.3K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards