First time buyer mortgage questions

lucas20042004

Hello,

I’ve just had an offer accepted and had a couple of questions. I have a £35k deposit and the accepted offer was at £475k.

1. The offer was at a 25k discount to the guide price. If the mortgage valuation is closer to the guide price, could the LTV be brought down past 90% and give me access to better rates?

2. If we do end up going with a maximum 95% LTV rate does putting down less deposit affect the chances of a successful application? For example if I put down £25k deposit instead would the lender be less likely to approve the mortgage? The difference in monthly payments would be negligible and affordability wouldn’t be an issue.

Thanks!

Caz3121

mortgage LTV will be based on purchase price or valuation whichever is lower

ACG

ITs very rare that valuations come back higher than the purchase price (I have only seen it once in 11 years). 
But as Caz says, unless you are buying from a relative at a reduced price, it would always be the lower of the valuation or purchase price. 

lucas20042004

Thanks for clarifying!

Do you have any insight into my second question?

FashionHeart

https://forums.moneysavingexpert.com/discussion/comment/80008224#Comment_80008224

Based on your question and information, it may be that the lender will reject your application as you're reducing the deposit amount.

I would advise you to ask a Mortgage Broker to seek any financial advice.

It is generally hard to advise with these things as everyones' finances are entirely different.