Purchase Price Not High Enough To Get Mortgage

Calibos

Hi,

I've just got a mortgage in principle from National Counties.
The place I am looking to buy is up for £130,000 although I think I've got a good chance of getting it for £120,000 - £122,000.
I have 20% deposit.
National Counties will borrow me upto £100,000.

When I was filling out the mortgage in principle form online it asked what the purchase price is, so I put in £120,000 but it then said that the minimum purchase price must be £125,000, so thats what I entered.

Is there any way around this ?

Mrs_Arcanum

Could it have anything to do with the number of years repayment? Perhaps repaying over 20 years rather than 25 may be an option!

anselld

Sounds like it is max 80% LTV so if you get the house cheaper than 125 just borrow a bit less than 100 to keep the LTV at 80%.

PS Don't show the vendor, the EA or anyone connected to them the figures until you have completed negotiations!

Thrugelmir

Calibos wrote: »

When I was filling out the mortgage in principle form online it asked what the purchase price is, so I put in £120,000 but it then said that the minimum purchase price must be £125,000, so thats what I entered.

Other than National Counties SVR mortgage. All other mortgage products require a minimum property value of £125k.

So if you agree a price below this threshold and apply for a product other than the SVR. Your application will most likely be declined.

Suggest you ring them tomorrow to clarify and confirm.