Working out LTV and a Mortgage question..

[Scrubs]

Folks,


Have had an offer accepted on a house. Home report value is 230k, my winning bid (closing date, popular area ect) was £237,200.


I'm looking to put a deposit of around 60k. Already have an AIP with HSBC.


Am I correct in saying the LTV for mortgage deals is based on my actual purchase price, and not the 230K home report?


Doing a simple calculation, (seeing broker on Tuesday as I am murder with figures), I take it my 60k-ish down is enough to give me access to mortgages needing a 75% LTV on the 237K purchase price?


25% of 237,200 = £59300, or am I missing something else?



Any replies appreciated for a slightly drunk, soon to be, home owner.

[Wombat3]

Scrubs said:

Folks,


Have had an offer accepted on a house. Home report value is 230k, my winning bid (closing date, popular area ect) was £237,200.


I'm looking to put a deposit of around 60k. Already have an AIP with HSBC.


Am I correct in saying the LTV for mortgage deals is based on my actual purchase price, and not the 230K home report?


Doing a simple calculation, (seeing broker on Tuesday as I am murder with figures), I take it my 60k-ish down is enough to give me access to mortgages needing a 75% LTV on the 237K purchase price?


25% of 237,200 = £59300, or am I missing something else?



Any replies appreciated for a slightly drunk, soon to be, home owner.

The LTV is the %age of the purchase price that the loan represents so if you are putting down £60K then you are putting down just over 25%. i.e. the LTV is just under 75%

(Assume you have other cash stashed for stamp duty, legal fees & moving costs )

So yes £60K should secure you access to 75% LTV mortgages - just.

[Scrubs]

Much appreciated, Sir..


Yeah, got extra cash for mortgage fees, stamp duty ect. It's strange that when I am on the HSBC website searching their mortgages deals, it won't let me select any of the 75% rates unless I adjust the deposit up to around 65k. Will only allow me the 80% deals.

Will see what the broker says.

[ClaphamGT3]

The LTv will be based upon the valuation that your lender's valuer gives the property. This may or may not be what you have just agreed to pay for it

[Scrubs]

ClaphamGT3 said:

The LTv will be based upon the valuation that your lender's valuer gives the property. This may or may not be what you have just agreed to pay for it

Ahhh..


So I've agreed a purchase price of 237,200. Mortgage company value house at 230,000, so I'd need to either borrow extra (which then affects ltv), or pay the extra myself above the 230k.. I think!

[rsbmw]

Correct, if you want 75% ltv, they will lend you 75% of 230k, rest is up to you

[Sarnie]

rsbmw said:

Correct, if you want 75% ltv, they will lend you 75% of 230k, rest is up to you

^This.

I'm a Broker and can confirm they'll use the lower of the Home Report figure or your purchase price.

How old is the Home Report? If it's more than three months old you can ask for it to be refreshed as it may have increased, in line or nearer to your purchase price.

[BigTom85]

I'd be sticking in a reduced offer.

[Scrubs]

Sarnie said:

^This.

I'm a Broker and can confirm they'll use the lower of the Home Report figure or your purchase price.

How old is the Home Report? If it's more than three months old you can ask for it to be refreshed as it may have increased, in line or nearer to your purchase price.

Cheers for that. Home report was only done on January 19th...

[Scrubs]

BigTom85 said:

I'd be sticking in a reduced offer.

Offer was accepted. House went to a closing date because of the high interest in it. Had four notes of interest in the first few days, so went over the value to try and secure it. It's a house type in this area that does not come up very often.

[BigTom85]

Scrubs said:

Offer was accepted. House went to a closing date because of the high interest in it. Had four notes of interest in the first few days, so went over the value to try and secure it. It's a house type in this area that does not come up very often.

If you haven't exchanged then I still reckon it's worth a punt.

[Scrubs]

Since I am here, and on the off chance someone reading can answer it (just posted it on house forum), anyone help with this answer

Scrubs said:

Got my solicitors letter has fee at £495+ VAT, and £540 registration, which is about right.

It also has 'Land Tax' cost as £3,260.

Surely this is not correct for my property price, or am I missing something? By my calculations and using land tax calculator it should be around £1800 ish

[essayer]

2% of balance over £125k, so £2252

[DoubleSix]

BigTom85 said:

If you haven't exchanged then I still reckon it's worth a punt.

Oh, you're one of those...

[Scrubs]

essayer said:

2% of balance over £125k, so £2252

So it looks like it might be a total plus their fees? Clear as mud on the letter...

[Scrubs]

Got reply on another forum.. Solicitor has obviously worked out land tax based on 273k instead of 237k.

Fills me with confidence in my chosen solicitor! These things happen I suppose.