LTV & LISA Savings

Tumble1620

Rattling my brain trying to figure this out if someone can clarify and ease my overthinking please would be much appreciated 😊

Can I use my savings in my LISA for a 10% deposit and the balance to cover the accepted offer?

Example being House value £170k 90% LTV £153k + 10% deposit of £17k leaving 3k in the LISA meaning I can make an offer of £173k??

Or does my full savings in the LISA need be used on the deposit therefore i can only ever offer the valued price??

Thank you

Getting_greyer

Do you mean you offered 173k but the valuation came in at 170k? Wouldn't you just increase your deposit to the full 20k still borrowing 153k at 90% ltv? 

Tumble1620

Would the lender then not only lend £150k as that's the 90% LTV and I would need to put up the extra £3k? I think I've been reading into this too much I'm a bit bamboozled lol 

Getting_greyer

90% of 170k is still 153k. Your just funding the 10% deposit + 3k to meet the agreed price.  Just like if your 3k was in another savings account.  

Be aware if you don't use this other 3k in the deposit, you would have to pay the charge on it when withdrawing so the actual amount would be less.

Tumble1620

Ah I get it now penny drop moment I thought the deposit + the LTV had to add up to 100% of the house value but makes sense now thank you 😁