Talk

Advanced search

Mumsnet has not checked the qualifications of anyone posting here. Free legal advice is available from a Citizen's Advice Bureau, and the Law Society can supply a list of local solicitors.

Mortgage question

(6 Posts)
MissHairspray Thu 07-Aug-08 21:15:44

Hi
We are in the process of buying a house for £146,000 and going for a mortgage with a 90% LTV rate, and the mortgage company have accepted this valuation. However, due to some problems that have arisen in the survey we are considering asking the seller to reduce the price. If they do this, would it be standard for the bank to still offer us the 90% of £146,000 given that it was valued at this, or would they only offer us 90% of the actual purchase price? Sorry if this is a stupid question but its my first mortgage.

Thanks for your help smile

fiodyl Thu 07-Aug-08 22:19:04

No idea sorry but I would only borrow the minimum amount needed.

milge Thu 07-Aug-08 22:21:54

mortgages are based on % of purchase price, or valuation, whichever is the lower. ie in this instance, you would only be able to raise 90% of valuation price.

It is possible to put a "retention" on a mortgage,ie retain part of the mortgage amount pending completion of works essential to a valution and thenvalue the mortgage on completion of works, when the property will be valued on a "when finished" basis. You could then borrow monies for works on an unsecured basis,moving to secured when finished.

missingtheaction Thu 07-Aug-08 22:26:03

It does depend a bit, but at the moment a 90% ltv is pretty high so they are likely to offer you 90% of the purchase price. But like Milge says, if you drop the price by £5k (say) to repair the roof then they can still offer you 90% of the original value (.9*146k=£131,400) but hang on to £5k of it until you have done the work to the roof.

It does depend on how flush the bank feel currently, how they think property prices are going to hold up round you, and how safe a bet they think you are as mortgagees!

mumthatworks Wed 20-Aug-08 21:00:44

Hi - I am a mortgage adviser and in my experience of the current market if you get the vendor to drop the price the lender will almost certainly only loan you the 90% of the purchase price.

Hope this helps
Good luck with your purchase
xxx

mumthatworks Wed 20-Aug-08 21:00:46

Hi - I am a mortgage adviser and in my experience of the current market if you get the vendor to drop the price the lender will almost certainly only loan you the 90% of the purchase price.

Hope this helps
Good luck with your purchase
xxx

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now