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House valuation and LTV for mortgage
anskills
Posts: 187 Forumite
Hi guys,
It's been a while since I've taken out a mortgage and hoping you can help me with a query.
If I were to buy a house for £180k that was valued at £200k and took a 75% LTV mortgage, would I:
A) receive funding of 75% of £200k (£150k) and then put down £30k of my money to meet the £180k purchase price
receive funding of 75% of £180k (£135k) and then put down £45k of my money to meet the £180k purchase price
Thanks
Kevin
It's been a while since I've taken out a mortgage and hoping you can help me with a query.
If I were to buy a house for £180k that was valued at £200k and took a 75% LTV mortgage, would I:
A) receive funding of 75% of £200k (£150k) and then put down £30k of my money to meet the £180k purchase price
receive funding of 75% of £180k (£135k) and then put down £45k of my money to meet the £180k purchase priceThanks
Kevin
0
Comments
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General rule of thumb, your LTV is based on the lower of the purchase price or valuation. The only exception to that would be if you are buying off a family member and the valuation comes back at the higher amount.I am a Mortgage AdviserYou 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.0
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Thanks for the advice!0
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