Deposit and LTV question

Simoney

I have recently started looking tor my first house and have come across a place that I like but needs a bit of work.

My question is, if I have an offer accepted for less than the home report valuation, for example an offer of 90k on a 100k value, does that mean that I could avoid having to put down a deposit and still get a 90% LTV mortgage?
Or would I still a 10% deposit to get the same rate for the mortgage?

Thanks.

ViolaLass

No, a house is worth what you pay for it, not more (and possibly less).

Aargh, Thrugelmir worded this better than I did.

Thrugelmir

LTV is based on either the purchase price or valuation, whichever is the lower.

ABBF08291

Do the same rules apply for concessionary sale where equity is gifted as part of the transaction?

Eg:
- parent owns house valued at £500k
- parent sells house to son for a discounted sale price of £400k
- son obtains mortgage for £300k
- is the LTV 75% or 60% ?

kingstreet

ABBF08291 wrote: »

Do the same rules apply for concessionary sale where equity is gifted as part of the transaction?

No they don't.

You use the full market value, rather than the discounted purchase price.