Loan to Value

NYJ

Hi,

I'm selling my home and buying another. The house I'm looking at is valued at £178,000 on the home report. We are looking to offer more than that - say £181,000 for example.

I was wondering how lenders judge the "Value" part of LTV. Is it based off the home report valuation, or on final sale price? So would I be paying £18,100 or £20,800 to achieve 90% LTV?

Thanks in advance.

YHM

The lower figure of the purchase price and the valuation

Lemonsqueezer78

LTV is calculated on the lenders/lenders agent's valuation. Unrelated to what you actually end up paying for it, so beware.

stripedbanana

We are in a similar position at the moment and my understanding of this is that if the house is valued at £178,000 and you offer £181,000, the LTV is calculated on the 178. So your "deposit" for 90% LTV is £17,800, then you pay the shortfall on top. So total upfront cost to you £20,800.