mortgage questions... FTB

stephenmacleod

Hi all,

potential first time buyer here. been offered the opportunity to buy my first home from someone I know. property is valued @ 69k. having spoken with them, I could get it for around 59k.

Now when I look at mortgages, it asks you to enter property value, and loan amount, thus generating your LTV. Now I know usually this is where you would enter the value of the property and the value of how much you want to borrow. Am I correct in thinking, that if I could buy the property for 59k, when it is valued at 69k, that I would not need an actual deposit? as the savings I am making on the deal equates to 15% of the property value?

Any help greatly appreciated. Basically I do not know what to put in for the value of the property and the loan amount as I would assume the bank would therefore expect you to hold the difference in your bank?

TIA,

Stephen

glentoran99

stephenmacleod wrote: »

Hi all,

potential first time buyer here. been offered the opportunity to buy my first home from someone I know. property is valued @ 69k. having spoken with them, I could get it for around 59k.

Now when I look at mortgages, it asks you to enter property value, and loan amount, thus generating your LTV. Now I know usually this is where you would enter the value of the property and the value of how much you want to borrow. Am I correct in thinking, that if I could buy the property for 59k, when it is valued at 69k, that I would not need an actual deposit? as the savings I am making on the deal equates to 15% of the property value?

Any help greatly appreciated. Basically I do not know what to put in for the value of the property and the loan amount as I would assume the bank would therefore expect you to hold the difference in your bank?

TIA,

Stephen

No you are incorrect, the LTV is calculated on the sale price, there may be a way though, look at this thread,


https://forums.moneysavingexpert.com/discussion/5510495

kingstreet

Are you related to the vendor, or are you a sitting tenant purchasing from your landlord?

If not, the concessionary purchase idea won't work and you will need a deposit and to use the lower amount as the purchase price.