mortgage fee taking above LTV ignored? And part loaned deposit?

ferox666

Hi there, I wondered if someone could help here.

I am planning to get a 75% LTV mortgage (the deal says max LTV 75%) but planned on added the circa £1000 fee to the mortgage - but obviously this would take me above slightttttttttttttly over 75% LTV, does the lender ignore this as it's their own fee? or would i only be able to get the 75% LTV if i pay the fee upfront to ensure amount borrowed is 75.00% of purchase cost/value.

meeting solicitor in few days so will ask them but wondered what to expect.

Also, a relative is either going to give or loan me approx £1k to "top up" the deposit to 25% - I have a feeling they will insist on it being gift but if they insist on it back, will lender disregard this as effectively part of the deposit would be funded by a loan - although only small % of it and there would be no fixed repayment terms. Just dont want rejected for the 25% LTV. BUT Dont want to lie and say its a gift if its not. i have a feeling it WILL be a gift but not sure at this stage and rude to ask my relative! I assume if it was "gifted" there'd be no problems since making up small part of deposit....hopefully. anyway will just be honest on the form and hope for the best! (and hope the £1k will be a gift )

thanks:)

ACG

It depends on the lender, some will allow you to add it others wont. Its the lender you need to ask not the solicitor.

Lenders wont accept loans as part of the deposit. It has to be a gift and the person giving/lending you the money has to sign paperwork to say it is a gift without reservation (ie theyre not expecting it back or anything else in return).

<sebb>

I've just received my mortgage offer through and they have added the fee to the loan (although I asked them no to). My deposit is exactly 80% and I've still been offered the 80% LTV rate even though with the added fees it's not quite 80% anymore.

robertmacklin

I've been wondering the same thing. If I want to capitalise the product fee, do I need to include this in my LTV calculations?

Out of interest <sebb>, who was the lender?

kingstreet

Some lenders allow you to add the arrangement fee, whatever.

Some lenders allow you to add arrangement fees provided the total does not go above the LTV ceiling for the product.

No hard and fast rule. The answer is going to be lender-dependent.

<sebb>

robertmacklin wrote: »

I've been wondering the same thing. If I want to capitalise the product fee, do I need to include this in my LTV calculations?

Out of interest <sebb>, who was the lender?

It was the post office