Making yourself appealing as a private buyer

[Deleted User]

jenni_fer said:

I think this is misleading.

If you offer 120k and it's valued at 100k, this is the figure that will be used for the LTV calculation.
So. If you were putting in 20% of the £120k you would be paying a deposit of £24k and asking for a mortgage of £94k.
As the bank thinks the property is worth £100k for their calculations they'll do 94/100 = 94% and therefore assuming the product you applied for is 90% max ltv will tell you you can only borrow up to £90k
BUT if you were putting down £35k and asking for £85k, while the LTV would change as a result of the valuation it wouldn't necessarily change anything else.

This is why FTBs who are usually the ones with high LTVs are the most impacted by valuations. If you have a low LTV, as long as you are happy with the price you are paying there won't be any issue.

Thank you @jenni_fer I think I'm going to have to read that very slowly to understand the figures fully (not my strongest point!)