deposit and loan value

Its_all_Dinx

Hi I am just trying to get my head around this

I have a 25k deposit I went to a few lenders and they said that I am able to borrow 175k now thats including my deposit.
150 + 25 =175

but do I then pay deposit on that 175k or is my 25k the deposit and added to the loan value?

so confused,

kingstreet

It sounds like your maximum mortgage is £150k, which when added to your deposit gives a maximum purchase price of £175k.

If, for example, you agree to purchase for £160k, if you put down £25k deposit you'll need a mortgage of £135k to complete your purchase.

Alternatively, if you need to keep back money for fees, that £160k purchase could be funded by £20k deposit and a mortgage of £140k. Take care not to fall into a new loan to value band and get a worse mortgage deal in the process though!

ie;-

£160k purchase with £135k mortgage = under 85% loan to value

£160k purchase with £140k mortgage = over 85% loan to value.