Mortgage Quert

MiniZoZo

Hi,

I've had an offer accepted on a property; and I was wondering if it is possible to get a mortgage for more than the offer. The house has been valued at £70,000-£90,000; my offer of £70,000 has been accepted, and I wanted to know if I could get a mortgage for £90,000 and use the £20,000 difference to make renovations?

Cheers,

TonyMMM

MiniZoZo wrote: »

Hi,

The house has been valued at £70,000-£90,000

Valued by who .... the estate agent ?

You will be able to borrow up to whatever your mortgage provider is prepared to give under the terms of the product you apply for...typically these days 80-90% of the actual valuation.

How much deposit are you putting down and what LTV does your mortgage provider require ?

Senior_Paper_Monitor

No - the LTV is set against the valuation (the mortgage company's) or price paid whichever is the lower

MiniZoZo

Thank you for your responses.

The mortgage provider is prepared to lend me 95 LTV; it was the auction house who valued the property in the price bracket. I thought for ease if I could borrow the extra money on my mortgage, as opposed to the other option given to me of getting a loan then re-mortgaging to release equity to then pay off the loan.

kingstreet

MiniZoZo wrote: »

getting a loan then re-mortgaging to release equity to then pay off the loan.

Not strictly on-topic but worth bearing in mind. If you do this, lenders tend not to accept applications where a property has been owned for less than six months. Factor this into your planning and watch the penalties for early mortgage and loan repayment.