Can someone clarify for me what is actually taken as the value of a property in an LTV mortgage. For instance if I can get a 90% LTV mortgage on a property advertised for 100k but get an offer of 95K accepted does this mean I only need to provide a 5% deposit, or is it the price I pay that is taken as the value.
Cheers, Chris
No.
It is generally the lower of the price you pay and the survey valuation.
The advertised price is clearly completely irrelevant, since you could in theory bribe the seller to re-advertise at a lot more and then give you a "discount". You might be able to do a deal whereby you actually pay more and get a kind of "cashback". Using your example figures, you'd "officially" agree to pay £100k, get a £90k loan, nominally put in £10k of your own money, but get £5k back, so you're really only paying a £5k deposit. This type of shady deal is also referred to as a (partly) vendor-paid deposit.
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