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Ftb needing help
Katy123_2
Posts: 1 Newbie
Hi I've seen a property that needs doing but need some help. It's on the market for 55000 however because of the work I was advised to bid 40000 and go from there.
When it comes to a mortgage if the property is valued at 55000 in current state and I get offer accepted at 40000 could I borrow more money on top up to potentially 90% of 55000. I feel like I may be confusing the situation but this is the plan.
Offer 40000 ( on this example it is accepted)
But borrow 45000-49000 so extra 5k to 9k to redo and borrowing is under 90% Ltv of 55000. So I get the cash and 40k to seller.
My parents think it can be done from when they had a mortgage in the past but I seem to think i would not be able to lend and the bank will only take on the purchase price of 40000 and I could only lend 36000.
Please help if you can
Thanks x
When it comes to a mortgage if the property is valued at 55000 in current state and I get offer accepted at 40000 could I borrow more money on top up to potentially 90% of 55000. I feel like I may be confusing the situation but this is the plan.
Offer 40000 ( on this example it is accepted)
But borrow 45000-49000 so extra 5k to 9k to redo and borrowing is under 90% Ltv of 55000. So I get the cash and 40k to seller.
My parents think it can be done from when they had a mortgage in the past but I seem to think i would not be able to lend and the bank will only take on the purchase price of 40000 and I could only lend 36000.
Please help if you can
Thanks x
0
Comments
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Lending would be against the LOWER of the purchase price or valuation.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Your parents are half right - a few years ago, it used to be possible to borrow more than the house was worth.
Not any more.0
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