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Deposit percentage befuddlement
Mallowmarshmallow
Posts: 51 Forumite
Hello all,
I'm having a dim moment and am sure someone can help me out...please?
If, I had £40,000 and wanted a mortgage for £200,000 for example, would my £40k be considered 20% of the full house price of 200k or 25% of the £160k I would need to borrow?
I'm sure it's very obvious but I can't quite get my head round which way it works....
Thanks in advance.
I'm having a dim moment and am sure someone can help me out...please?
If, I had £40,000 and wanted a mortgage for £200,000 for example, would my £40k be considered 20% of the full house price of 200k or 25% of the £160k I would need to borrow?
I'm sure it's very obvious but I can't quite get my head round which way it works....
Thanks in advance.
0
Comments
-
If you wanted to buy a house costing 200k. 40k would be 20% deposit and you would need an 80% mortgage of 160k.0
-
full price...so if house is £240K. then deposit is 40/240...or about 16% (but I've done that one in my head...)
if it is £200K house then £40k is 20% LTV.0
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