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Mortgage query - confused about borrowing more than house value
bingobangobongo
Posts: 218 Forumite
Please help me here as I'm sure my maths is flawed, and also to let me know if this impossible or not.
We are looking at buying a new house, hoping to buy it for 200k.
I want to put down 30% deposit as the rates are better, so 60k needed for that.
but the house needs a little bit of work, not much. A new kitchen be great and maybe a new bathroom.
So can I borrow 210k and still put down 30% for a deposit, to get the better rates. So I'd be borrowing 147k rather than 140k.
The other option is to put down less deposit on the 200k house. E.g put down 50k deposit, but then that's only 25% deposit and the monthly cost is higher.
Does this make sense, and will a lender allow this?
We are looking at buying a new house, hoping to buy it for 200k.
I want to put down 30% deposit as the rates are better, so 60k needed for that.
but the house needs a little bit of work, not much. A new kitchen be great and maybe a new bathroom.
So can I borrow 210k and still put down 30% for a deposit, to get the better rates. So I'd be borrowing 147k rather than 140k.
The other option is to put down less deposit on the 200k house. E.g put down 50k deposit, but then that's only 25% deposit and the monthly cost is higher.
Does this make sense, and will a lender allow this?
0
Comments
-
In short no.
The lender will lend (minus the deposit) either the amount you have offered or the valuation price, whichever is lower.0
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