Mortgage advice

BellA

Can you get more on your mortgage than the price of a property? Say you are paying £230k for a house could you get a £235k mortgage? 

user1977

You couldn't realistically even get a £230k mortgage at the moment.

BellA

user1977 said:

You couldn't realistically even get a £230k mortgage at the moment.

It was just an example of extra money on your mortgage. If you purchase a house for £120k could you get a mortgage for £125k 😂

Thrugelmir

No. Those days are long gone.

Ramouth

Not any more.  Max loan to value is 95% at the moment.  So you need a deposit of at least 5% plus enough cash to cover stamp duty, searches and solicitor’s fees.

user1977

BellA said:

user1977 said:

You couldn't realistically even get a £230k mortgage at the moment.

It was just an example of extra money on your mortgage. If you purchase a house for £120k could you get a mortgage for £125k 😂

The amount doesn't matter, the point is you can't even get 100% mortgages, never mind 105%.

AdrianC

Mortgage loan-to-value is the proportion between the borrowed money and the value of the property.

Lenders want to know that, if they repossess, they aren't going to have to chase you for a huge shortfall...

If you buy a £100k house, and the mortgage is £90k, that's 90% LtV.
If you buy a £100k house, and the mortgage is £100k, that's 100% LtV.
If you buy a £100k house, and the mortgage is £110k, that's 110% LtV.

105%+ mortgages used to be a thing, but anything 100% or more went out with the financial crash a decade and a half ago.
85-90% is the maximum you'll easily get now, with 95% for those with utterly squeeky-clean credit records.

BellA

AdrianC said:

Mortgage loan-to-value is the proportion between the borrowed money and the value of the property.

Lenders want to know that, if they repossess, they aren't going to have to chase you for a huge shortfall...

If you buy a £100k house, and the mortgage is £90k, that's 90% LtV.
If you buy a £100k house, and the mortgage is £100k, that's 100% LtV.
If you buy a £100k house, and the mortgage is £110k, that's 110% LtV.

105%+ mortgages used to be a thing, but anything 100% or more went out with the financial crash a decade and a half ago.
85-90% is the maximum you'll easily get now, with 95% for those with utterly squeeky-clean credit records.

So if you had say 10% deposit, purchased a house for £100k but wanted £110k so had £11k deposit and required a mortgage of £99k even though you paid £100k for the property, could you still take the extra £10k? I know people used to do that I was just checking if it's still something they offer.

jazzyja

BellA said:

AdrianC said:

Mortgage loan-to-value is the proportion between the borrowed money and the value of the property.

Lenders want to know that, if they repossess, they aren't going to have to chase you for a huge shortfall...

If you buy a £100k house, and the mortgage is £90k, that's 90% LtV.
If you buy a £100k house, and the mortgage is £100k, that's 100% LtV.
If you buy a £100k house, and the mortgage is £110k, that's 110% LtV.

105%+ mortgages used to be a thing, but anything 100% or more went out with the financial crash a decade and a half ago.
85-90% is the maximum you'll easily get now, with 95% for those with utterly squeeky-clean credit records.

So if you had say 10% deposit, purchased a house for £100k but wanted £110k so had £11k deposit and required a mortgage of £99k even though you paid £100k for the property, could you still take the extra £10k? I know people used to do that I was just checking if it's still something they offer.

No because mortgage is subject to valuation

grumiofoundation

BellA said:

AdrianC said:

Mortgage loan-to-value is the proportion between the borrowed money and the value of the property.

Lenders want to know that, if they repossess, they aren't going to have to chase you for a huge shortfall...

If you buy a £100k house, and the mortgage is £90k, that's 90% LtV.
If you buy a £100k house, and the mortgage is £100k, that's 100% LtV.
If you buy a £100k house, and the mortgage is £110k, that's 110% LtV.

105%+ mortgages used to be a thing, but anything 100% or more went out with the financial crash a decade and a half ago.
85-90% is the maximum you'll easily get now, with 95% for those with utterly squeeky-clean credit records.

So if you had say 10% deposit, purchased a house for £100k but wanted £110k so had £11k deposit and required a mortgage of £99k even though you paid £100k for the property, could you still take the extra £10k? I know people used to do that I was just checking if it's still something they offer.

If you are buying for 100k why would you need 110k (other than fiddle a >95% mortgage)?

In your example that would be a 99% LTV mortgage with a 1k deposit. 

AdrianC

BellA said:

AdrianC said:

Mortgage loan-to-value is the proportion between the borrowed money and the value of the property.

Lenders want to know that, if they repossess, they aren't going to have to chase you for a huge shortfall...

If you buy a £100k house, and the mortgage is £90k, that's 90% LtV.
If you buy a £100k house, and the mortgage is £100k, that's 100% LtV.
If you buy a £100k house, and the mortgage is £110k, that's 110% LtV.

105%+ mortgages used to be a thing, but anything 100% or more went out with the financial crash a decade and a half ago.
85-90% is the maximum you'll easily get now, with 95% for those with utterly squeeky-clean credit records.

So if you had say 10% deposit, purchased a house for £100k but wanted £110k so had £11k deposit and required a mortgage of £99k even though you paid £100k for the property, could you still take the extra £10k? I know people used to do that I was just checking if it's still something they offer.

Eh?

If you had £10k equity, you would be borrowing £90k.

The house is worth £100k, whether you're borrowing £90k, £50k or nothing.

You can't randomly borrow whatever amount you feel like, no...