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Loan to Value
NYJ
Posts: 1 Newbie
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.
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.
0
Comments
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The lower figure of the purchase price and the valuationI am a Mortgage Broker.
You should note that this site doesn't check my status as a Mortgage Broker, 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 advice0 -
LTV is calculated on the lenders/lenders agent's valuation. Unrelated to what you actually end up paying for it, so beware.0
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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 £20,800.0
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