The Rig

iTrader: (13)

buying a house for £169k

mortgage taken out £150k

if the valuation of the house say,was £165k,would the mortgage people hold back any monies off the £150k borrowed until said work was fixed to bring value up on house,or wouldnt it matter as £165k is still more than the £150k im borrowing ?

cheers

Luan Pra bang

not usually a problem unless the difference crosses the threshold Ltv for that mortgage IE a loan could be based on 90% loan to value if it goes over that the the same mortgage provider may have a different product that works for 95% loan to value with a slightly higher rate.

GazTheHat

I thought you would borrow £150k against a £165k house and you pay the £4k. So the percentage loaned is more. 90% instead of 88% or whatever it equates to. Doubt they hold money back.

David Lock

Well Northern Rock is the answer. Reading the Times yesterday they were offering 6 x salary mortgages and 117% negative equity mortgages if needed

And there was me thinking that they might have been a bit more cautious now. dl