Looking to move

Curiositymoney

Hello,

I am currently with RBS and was looking to possibly move house. Spoke with the today and currently have mortgage of £69k on a value of about £85k.

Looking at a property with Valuation of £175k, with a reinstatement of £225k. Purchase price is £145k.

RBS say I need a 30% deposit based on a 70% LTV against the £145k. Do they not take into account the Valuation at all? The adviser I spoke to said that they base the LTV on the lower of the purchase price and valuation.

Thanks for any comments.

Yorkie1

Their stated approach is correct and standard across the board.

Thrugelmir

Curiositymoney wrote: »

Looking at a property with Valuation of £175k, with a reinstatement of £225k. Purchase price is £145k.

Then the property is worth £145k.

Curiositymoney

Ok, that's what I wanted to double check. So if I got the property and then wanted further borrowing and their valuation still says £175k then I would be over 100% LTV as the mortgage is based on £145k?