Help me make sense of the figures...

DilbertJones

I need some help clarifying things please.

I have available to borrow up to 143k
Equity of 27k

We have just had a second viewing on a property listed at 159k this is in need of a whole new kitchen (we couldn't live with it for longer then a couple of months) and it needs a bath fitting (shower only but plenty of space)

I have estimated I would need to keep from my equity around 7,000 in order to do the above, plus I'd like to repay my cc debt upon completion of sale 2,500 & would need to cover moving costs fees @ stamp duty.

I believe we could get the house for 153 is there any way of keeping the money for the projects and remain within 90% LTV ?

My heads frazzled

princeofpounds

Equity of 27k.
minus 7k for kitchen
minus 2.5k for ccard
minus 1.5k? moving costs
minus 1.5k stamp duty

equals 14.5k remaining equity.

So the answer is no. You have enough total borrowing capacity plus equity (157.5k) to afford the property but you are not putting in enough equity to make the LTV requirement (you have a 9.5% deposit)

You need to save more money, especially given I haven't included figures like lawyers and surveys. But you aren't a million miles away.

DilbertJones

Just as I thought.... Interestingly enough I could by a house valued at 160k put 20k equity in as deposit (12.5%) and get a house with a good kitchen and overall house in a better shape..... But i'd be borrowing more for the pleasure!!

princeofpounds

But i'd be borrowing more for the pleasure!!

Yes, but you'd be spending less.

DilbertJones

Arrrggghhh.... I am not sure if I M doing the right thing here, only me and the wife can answer this but I think we may be missing out on such a great house with an incredible garden over a kitchen we could if need be put up with until the funds become available to refit.

SG27

Just offer less?

DilbertJones

We've thought about it and we have decided its not for us, there is always other houses. To prove a point we have just come accross another, far better condition, good area and the asking price is only slightly more but still within budget