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  • mortgage deposit

    Hi if I buy a property valued at £93,500 and the vendor sells it to me for £80,000 how much deposit will I need if the loan to value is 75%

  • #2
    Re: mortgage deposit

    Well if the RICS valuation is according to the circa 90k mark then the deposit required would be 23,375

    the basic formula would be [RICS VALUATION * 0.25 = DEPOSIT REQUIRED]

    Thanks

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    • #3
      Re: mortgage deposit

      Most lenders base their loan on the purchase price making a deposit of 20K

      Comment


      • #4
        Re: mortgage deposit

        Hi if I buy a property valued at £93,500 and the vendor sells it to me for £80,000 how much deposit will I need if the loan to value is 75%
        Why is the vendor prepared to sell it to OP for £80K. Is he a friend or family?

        Or is the situation that someone suggested that the property be marketed for £93.5K and there have been no takers? if the latter then the value is what you are paying, £80K, therefore you will need to find £20K.

        If seller is family/good friend and wants to gift you some of the excess value and the lender's surveyor is convinced it really is worth £93.5K then possibly lender will lend 75% of £93,500 = £70,125 and therefore you would need £9,875.

        A fee that a lender charges a borrower that allows the borrower to lock in an interest rate for a certain time period with the expectation that the borrower's mortgage will fund within that time period. The longer the lock period, the larger the required lock deposit.
        Don't think this has anything to do with the question being asked.
        RICHARD WEBSTERwww.rwco.co.uk
        As a conveyancing solicitor I want to be helpful (England/Wales only) but can't accept liability for this.

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        • #5
          Re: mortgage deposit

          The value of anything is what someone is willing to pay for it.. in my experience the lender would see the value as the 'lower' of the 2 values, i.e £80k therefore £20k deposit.

          Good luck

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          • #6
            Re: mortgage deposit

            Hi

            You'll need 25% of the sale price but when your mortgage lender makes their own valuation they should stick to this unless they decide it's worth LESS than what you're paying (although it sounds like this won't be the case)

            Best of luck
            Free Guides For First Time Buyers!

            www.FirstTimeBuyerGuru.com

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            • #7
              Re: mortgage deposit

              The purchase price is the figure that the lender uses for calculating the deposit amount. Regardless of whether you, the estate agent or the landlord think its worth £93,500, the lender will disregard this figure if you are buying it for £80k.
              Anthony
              Compare the Mortgage Market
              http://www.comparethemortgagemarket.com

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              • #8
                Re: mortgage deposit

                You can consult a financial advisor to see if there’s a lender on the market, that requires a less deposit and lend more for the house. On your valuation it seems that a 20k is required.
                We have debt solutions to help you get out of debt problems

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                • #9
                  Re: mortgage deposit

                  You do not have to provide 25% deposit either, there are alright 90% - 95% deals available still. You could do with a quick chat to an adviser I think.
                  Anthony
                  Compare the Mortgage Market
                  http://www.comparethemortgagemarket.com

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                  • #10
                    Re: mortgage deposit

                    If you are a first time buyer then 90% LTV could be achieved, in this case you will be ok unless you mention to the lender you are purchasing at 80k.

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                    • #11
                      Re: mortgage deposit

                      If you cant work that out you shouldnt be getting a mortgage!
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