FTB with a bit more than 5% deposit

robedha1

I'm a first time buyer and have a 95% mortgage in principal. I am in a position to put down a larger deposit but not enough for 90% LTV. It will mean that I can buy a slightly more expensive house but borrow the same amount. Is this something which lenders will agree to?

rodenal

Your AIP is based on the lender giving you £xk pounds at a ltv of 95%. If the ltv you want to apply for ends up being say 93% but with the same loan sum it won't be an issue, alternatively if you offer a bit more cash but the loan amount stays the same it wont/shouldn't be any problem.

So in short....yes you can buy a slightly more expensive house (very very slightly) but your ltv must not go above 95%.

Personally i'd just put that little bit extra towards the house and getting the ltv down, if only slightly.

robedha1

rodenal wrote: »

Your AIP is based on the lender giving you £xk pounds at a ltv of 95%. If the ltv you want to apply for ends up being say 93% but with the same loan sum it won't be an issue, alternatively if you offer a bit more cash but the loan amount stays the same it wont/shouldn't be any problem.

So in short....yes you can buy a slightly more expensive house (very very slightly) but your ltv must not go above 95%.

Personally i'd just put that little bit extra towards the house and getting the ltv down, if only slightly.

Thanks, that's what I thought. Just wanted a bit of confirmation.