Deposit needed if mortgage is 1/4 value of house?

Lovetotravel

If I’m taking a 50/60k mortgage on a property worth 200k, will the mortgage provider still ask for a deposit? Or is this only the case for mortgages for the full value?

glentoran99

the 140/150k is your deposit

ACG

Are you purchasing the property or remortgaging?
If purchasing, why are you getting it for a quarter of the value? The equity may not be classed as the deposit, it would depend on the details.

Lovetotravel

ACG wrote: »

Are you purchasing the property or remortgaging?
If purchasing, why are you getting it for a quarter of the value? The equity may not be classed as the deposit, it would depend on the details.

It’s a deceased family members property, so I’m very grateful to be getting such a great price to purchase it at.

glentoran99

Ah my bad, I presumed you had the rest as savings

Lovetotravel

glentoran99 wrote: »

Ah my bad, I presumed you had the rest as savings

pfftttt, I bloody wish! :rotfl:

ACG

In the main, lenders will accept the equity as the deposit.
Some lenders will still want you to put at least 10% in on top.

You should be fine, but it is worth checking before doing any credit checks/applications assuming you are not using a broker.

AnotherJoe

Make sure they understand the situation before you proceed.
I think most will be OK subject to their survey valuation coming back in the same vicinity as you think its worth.