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Stumped by simple mortgage question!
cooldudecol
Posts: 784 Forumite
Hi,
My sister's been told that she can only get a 95% mortgage for the value of their home, but I always thought that you could get a mortgage for as much as you want based upon your salary.
She's in Scotland and I'm in England.
Is she right? Am I wrong? Or is it different in England and Scotland?
My sister's been told that she can only get a 95% mortgage for the value of their home, but I always thought that you could get a mortgage for as much as you want based upon your salary.
She's in Scotland and I'm in England.
Is she right? Am I wrong? Or is it different in England and Scotland?
0
Comments
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I am Scottish, but most mortgage lenders operate the same north and south of the border.
It is my understanding that mortgages are based on the VALUE OF THE PROPERTY as they use the property as security. Your income is assessed to enable that you can pay back the mortgage, but ultimately the value of the property is what counts.
I can't promise that all my replies will illicit this responser.mac, you are so wise and wonderful, that post was lovely and so insightful!
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Thanks r.mac - so if the house sells for more than what it's worth, you have to find the extra money between the mortgage based upon the valuation and the actual selling price?
I've only just bought a house, so I'm not clued up on it!0 -
You can mortgage in proportiion to the purchase price or valuation of the property whichever is the lower, as long as your income supports the amount involved.
Technically you are both right but also both wrong in a way.
Hope this helps
Andy0 -
you can actually borrow up to 125% of the value of the property with certain lendersI am a Mortgage AdviserYou 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.0
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AndrewSmith wrote:You can mortgage in proportiion to the purchase price or valuation of the property whichever is the lower, as long as your income supports the amount involved.
Technically you are both right but also both wrong in a way.
Hope this helps
Andy
Yes andy is right - you managed to put it more clearly than me - thanks.
I can't promise that all my replies will illicit this responser.mac, you are so wise and wonderful, that post was lovely and so insightful!0
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