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Ltv ?

Just have a quick question about the Loan to Value (LTV)
ive tried searching about on the internet but still cant find anything to answer my question.
Is the LTV rate based on the house price you bought or is it the actual value of the house?
I have been looking at a house that has been valued at £125,000 on the home report but is for sale for £115,000

Comments

  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    It will be based on the LOWER of the purchase price or valuation, unless Right to Buy or family sale
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ryan86uk
    ryan86uk Posts: 173 Forumite
    So, when house prices go up (or down) say 5 years into a mortgage deal and you're looking at remortgaging what LTV figure do they use then?


    thanks.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    ryan86uk wrote: »
    So, when house prices go up (or down) say 5 years into a mortgage deal and you're looking at remortgaging what LTV figure do they use then?


    thanks.

    The valuation. With a remortgage there is no purchase price so the only figure is the value
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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