Mortgage illustration questions

Maka29

A younger family member is buying a property. He has a mortgage certificate and an illustration. The illustration shows the new property address and all the payments for the next 25 years.
I didn't think illustrations contained the new property address. Does it mean that the document check has passed? If it doesn't, how long should it take for the document check to be done? 
At what point is the mortgage valuation done? It's HSBC and the illustration is dated 7/5/25.
Can someone help with calculating the LTV?
Property is valued £85k. It's being sold at a reduced price of £65k with a lifetime ISA deposit of £15k.

eddddy

Maka29 said:

Can someone help with calculating the LTV?
Property is valued £85k. It's being sold at a reduced price of £65k with a lifetime ISA deposit of £15k.

When calculating the LTV,  you would compare the amount being borrowed with the lower of the purchase price or the valuation.

So if you are saying...

• The purchase price is £65k
• The mortgage will be £50k
• (and the deposit will be £15k)

Then the LTV is 50k as a percentage of 65k - which is approx 77%


(Unless you are saying that it's a concessionary purchase. If so, some lenders might treat things differently, but I don't think HSBC do.)