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FTB deposit mortgage help
Sxdxs
Posts: 1 Newbie
Hello
My partner and I met with a mortgage broker today. We have 20k saved at the moment. He took our details etc and said we could get a 220k mortgage with a bank.
He said with our 20k on top we can look at houses around 240/250k price range- great!
However, now I'm a little confused! Please can someone clarify?
I thought we would need to put down a 10% deposit. If that's the case, shouldn't I be looking at houses worrth 200k as we only have 20k deposit.
Any help/guidance is greatly appreciated.
Thanks
My partner and I met with a mortgage broker today. We have 20k saved at the moment. He took our details etc and said we could get a 220k mortgage with a bank.
He said with our 20k on top we can look at houses around 240/250k price range- great!
However, now I'm a little confused! Please can someone clarify?
I thought we would need to put down a 10% deposit. If that's the case, shouldn't I be looking at houses worrth 200k as we only have 20k deposit.
Any help/guidance is greatly appreciated.
Thanks
0
Comments
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He's got his sums wrong unless he's looking at mortgages up to 95%.
10% of 240k is obviously 24k.
If you are looking at 90% LTV mortgages then 200k is your purchase limit.0 -
The higher the Loan to Value % the higher interest you'll pay (and hence your mortgage payments will be higher/you'll need to pay over more years).
With a 20k deposit and 180k mortgage your LTV is 90%.
With a 20k deposit and 200k mortgage your LTV is 91%.0 -
If you buy a new build, you could get HTB...are you looking for a new build?0
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You don't HAVE to put down 10% deposit, but if you WANT to, you need to work to a lower purchase price.
I would tell someone their overall maximum then I'd expect them to apply some basic reasoning about how much they can expect to offer less than the asking price and what percentage mortgage they will need based on the deposit they have now and later if they plan to add to it.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
The higher the Loan to Value % the higher interest you'll pay (and hence your mortgage payments will be higher/you'll need to pay over more years).
With a 20k deposit and 180k mortgage your LTV is 90%.
With a 20k deposit and 200k mortgage your LTV is 91%.
A 20k deposit on a 180k mortgage LTV is 89%.
A 20k deposit on a 200k mortgage LTV is 90%.0 -
A 20k deposit on a 180k mortgage LTV is 89%.
A 20k deposit on a 200k mortgage LTV is 90%.
£20k deposit with a £180k mortgage is a £200k property. £20k Loan to £200k value is 90% LTV.
£20k deposit with a £200k mortgage is a £220k property. £20k loan to £220k value is 91% LTV.Thinking critically since 1996....0 -
No, elverson was correct.
A 20k deposit with a 180k mortgage implies a 200k property value, so LTV is 180/200 = 90%
A 20k deposit with a 200k mortgage implies a 220k property value, so LTV is 200/220 = 90.9090..% so roughly 91% LTV.
The 'value' is the property value which is made up of deposit + mortgage loan (assuming purchased at market value)0 -
somethingcorporate wrote: »£20k deposit with a £180k mortgage is a £200k property. £20k Loan to £200k value is 90% LTV.
£20k deposit with a £200k mortgage is a £220k property. £20k loan to £220k value is 91% LTV.
Haha yes completely read the mortgages as purchase price. :rotfl:
And its only Tuesday
think I need a drink 0 -
Make sure you take into account stamp duty, legal fees etc.
We looked at houses advertised up to the maximum we could afford the deposit for, obviously intending to pay less than list price. Good thing we did too, because the other costs stack up quickly!0 -
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