FTB Morrgage Question

valleylass

Hi
Hope I'm posting this in the right place, if not can someone move me please.

Am a FTB buyer, have been been looking around at mortgages and it seems that basedupon my current salary I can borrow upto £125,000.
My question is this, if for eg I found a house for £145,000 and I can borrow £125k, for my deposit would I need to have 10 or 15% of £125k so up to £18,750, and then make up any shortfall myself?

So if my maths are right (i doubt they are!) I would need £18,750 and then potentially another £20k on top of that?

Would that be allowed by the mortgage companies?

hcb42

If you find a house at £145K and can borrow £125K, then you will need £20K deposit.

Your LTV (Loan to value) would be about 86%, (making your deposit 14% i.e. £20K/£145k) so as long as that is ok for your mortgage then you will be ok

DannyboyMidlands

I'm slightly confused by the way your post is worded.

If you wanted to buy a house at £145k, your deposit would be 10 or 15% (ideally more) of £145k. So if we say 15% you'd need a deposit of £21,750 and a mortgage of £145,000 - £21,750 = £123,250.

valleylass

Thanks for the replies sorry if the post was a bit confusing it all seemed so clear in my head!!:o

I'll go with your ways of thinking because that'll mean I need even less of a deposit!!:beer:

Thanks again for your help