mamoon2

If one were to buy a house at less than the valuation would one get a better LTV on a mortgage.

Example:

I buy a house worth £200k in todays market for £150k......

Does that mean my LTV ratio will be 75% before I add on my deposit? or does it not work that way?

Is it based on the price paid or the market value?

Luminous

iTrader: (3)

Based on assessed market value at the time you try and get your loan compared to the amount you are asking to borrow.

PaulC72

Based on the banks assessment value.

Mrfastbaz

as above

hodgy0_2

as above -- the bank lends the money against the asset - they decide what it is worth

money talks and bull**** walks -- and Estate agents don't lend the money

njkmrs

And its the way forward Son .!!!

Crack on .!!!

andythejock01wrx

Well, I have a mortgage quandry too.

I was on a two year fixed, having been daft enough to fix it just before the rates plummeted! Anyway that has just ended and ING say that on their std variable my new monthly payment is to be £185 less than it was. Yay!

Only thing is I think they have misacalculated. I put the figures onto their online calculator and it comes up £70 more! Any thoughts as to whether they are likely to attempt to recoup the costs from me if they undercharge me in error and realise at a later date? Should I say nothing?!

PaulC72

TBH I would ask them to check it and get it in writing, once you have it in writing I am sure they would almost have to stand by it, could you imagine the press coverage for that...if you just paid a lower amount without checking it could it be deemed as fraud?

cookstar

iTrader: (6)

Even if the house is worth £200k, and you are paying £157'500, the valuation will come back as £157'500, with a possible side not saying properties of this age and condition range from £140'000 and £210'000.

Well that has been my experience with every place I have bought, so no you wont be able to get a better LTV.

hodgy0_2

i think they will be able to reclaim the money TBH in the same way if they credit you with monies in error they simply debit your account

maybe if you had it in writing, but I still doubt it

andythejock01wrx

That was what I was thinking. Checked online with other lenders and can't get near to their figure.