House valuation and LTV for mortgage

anskills

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

ACG

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.

anskills

Thanks for the advice!