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First time buyer enquiry
alifeforfriend
Posts: 70 Forumite
Hi Everyone ,
I hope someone can help me with my query. I am about to purchase a property. The deal i had with the owner is 150000 pounds, but the current value of the property in the market is about 190000 pounds. I have a very good relation with the current owner , and he is somewhat related to me thats why i am getting the property for this cheap.
I am thinking of putting a 15 percent deposit in the property. So basically i will be borrowing 127500 pounds from the bank. Now my question is will the bank count the loan to value ratio as purchase value to loan required or it will be market value to loan required.?
if they count as market value to loan required then i can get much better interest rate.
I hope someone can help me with my query. I am about to purchase a property. The deal i had with the owner is 150000 pounds, but the current value of the property in the market is about 190000 pounds. I have a very good relation with the current owner , and he is somewhat related to me thats why i am getting the property for this cheap.
I am thinking of putting a 15 percent deposit in the property. So basically i will be borrowing 127500 pounds from the bank. Now my question is will the bank count the loan to value ratio as purchase value to loan required or it will be market value to loan required.?
if they count as market value to loan required then i can get much better interest rate.
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Comments
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They will work on the purchase price rather than the value unless the owner is a very close relative.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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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Though when your initial deal expires (eg. 2 year fix) you will be able to re-mortgage and then the value will be used.0
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Lucky sod. Nepotism :mad:Changing the world, one sarcastic comment at a time.0
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alifeforfriend wrote: »Thanks for your help. I see your point, but he is just a relative not very close
Then the mortgage will be based on £150,000 purchase price (unless the valuation comes out lower).I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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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