What does LTV actually mean?

Lam1983

Ok I'm a complete mortgage novice and I'm clutching a straws here.

We have found a house which has been part exchanged and the company that owns it accepted a offer of £132k when it's on the market for £145k worth prob around 150k.

Unfortunately my husband has defaults so we cannot get a mortgage with a mainstream lender. Our only hope is to get a one with a lender that will give to folk like us!

Our problem is we can only come up with 10% Of 132k when they say they will only lend 80% ltv does this mean we need 20% of 132k or does it go on actual value of the property. So confused and hoping that there's some way on earth to get this damn mortgage!!!!

Thrugelmir

You'll be offered 80% of the purchase or the valuation which ever is the lower.

A property is only worth what someone is willing to pay for it.

Lam1983

Thank you

Suarez

Lam1983 wrote: »

We have found a house which has been part exchanged and the company that owns it accepted a offer of £132k when it's on the market for £145k worth prob around 150k.

The property is worth 132k. Where did you get 150 from?

Lam1983

Suarez wrote: »

The property is worth 132k. Where did you get 150 from?

What was the actual point of the question, if only to try make me look stupid?

I think you can clearly see I'd already stated I knew VERY little about mortgages and how these things work and that the first person to answer had just very kindly and nicely explained this to me.

TheITguy

I guess what was meant is that the amount of 150 is irrelevant at this stage. You will need to work with 132 (if that is what was accepted).. You will need to come up with about 26.5K (20% deposit & 80% LTV).. Alternately, better off contacting a broker to see what rates you can get