LTV as surveyed or LTV as purchased?

Ashcloud_2

Question regarding mortgage LTV...

I am looking to purchase a property valued/surveyed at £200k but purchasing it below market value for £170k

Could I use this 30k difference as the deposit for a LTV mortgage without putting in my own savings? Or will I still have to find the deposit based on the £170k? If this is the case does this not affect the loan to value %?

I'm a bit confused!

Annisele

Generally the LTV is based on the lower of the purchase price and the survey value - so in your case it would be based on £170k, and you'd have to fund a deposit out of your own savings. (Reasoning is that if you and the seller have reached an agreement to trade the property for £170k, it can't really be worth any more than that or the seller would have held out for more).

However, if you can persuade the lender that the £170k really isn't the genuine market value - eg if the seller is your mother and she's happy to effectively gift you £30k - you might manage to get an LTV based on £200k.

Senior_Paper_Monitor

Surveyed by who ?

Who owns the hosue now ?