House valuation higher than purchase price

Sineady

We are buying our house off the landlord for 70k
Mortgage valuation came back at 80k
Which most people say they never put a higher figure than purchase price..
Mortgage advisor has said we wont have to put as big of a deposit down even though we was only putting the minimum of 5% down
Does the valuation factor into the LTV ratio...
As all I have read online is that its on the purchase price
Confused!

Thrugelmir

Lower of valuation or purchase price.

What was the purchase price quote on the valuation?

Sineady

We're paying 70k
Theyve valued it at 80k

Caz3121

Sineady wrote: »

We're paying 70k
Theyve valued it at 80k

mortgage LTV will be based on % of £70k purchase price (as it is lower than the valuation)
If you had a £7k deposit you would be looking at a mortgage of £63k @ 90% LTV

If it was the other way around, offer £80k value £70k at 90% LTV you would still get a mortgage of £63k but would need to find £17k as a deposit to purchase for £80k

frugalsmurf

It won't affect your deposit if they've valued it more.(only if they'd valued it higher or the purchase price had been changed)
It's irrelevant to your deposit what it's valued at.