Mortgage Probability

Househunter2885

Hi I am hoping someone can help.
We are interested in buying a property it's offers over £170,000 in Scotland.
It's value is £170,000 according to the home report.
I would like to offer £190,000 as the houses in that area normally go for much more and a closing date has been set. My question is we have £20,000 for a deposit, will we be approved for a mortgage or will the house value impact our mortgage application. Will the LTV be for the mortgage on completion or the home report value.
We have a mortgage in principle for £240,000.

Thanks for reading any advice is appreciated

Nebulous2

LTV will be calculated on the lower of home report value or what you pay.

So if you offer £190k you will need a £37,000 deposit to get a 90% mortgage or £28,500 to get a 95% mortgage.

ACG

You could potentially do 90-95% of £170,000 as a Mortgage and pay the additional £3-7,000 over and above the £170k valuation but you would be on a 90-95% LTV.