Maximum a lender will lend on house purchase

TrickyRicky75

Hi All

Quick question. I am currently putting my house on the market, looking to upsize to gain an extra bedroom for my growing family.

The house we are looking at buying is on the market at £280k yet we know the sellers will accept a lower total nearer to £270k. We have applied for a 90% mortgage. Will the mortage company lend 90% of the agreed purchase price (£270k) or will they base it on the "true value" of the property (£280k) ?

Thanks
Rick

hcb42

£270K. i.e. selling price.

'true value' is meaningless.

Mark148

I believe that they will give you an offer in principle of a loan based on the sale price of £270k subject to certain conditions and valuation. If the valuation comes back at £220 then you will be offered 90% LTV = £198.


Good luck

GMS

Lending will be based on the LOWER of the purchase price or valuation.

DannyboyMidlands

Why is £280k the true value? If they stuck a £350k price on it would that also be the true value?

The sale price is the value.