I am buying a flat to let out. We need a 15% deposit and wonder if the difference in the purchase and value price can make up part of this deposit?
We are paying £64'000 and it has valued at £70'000.
2007-02-05 21:19:39 · 8 answers · asked by peapod 2 in Business & Finance ➔ Renting & Real Estate
I am buying in Fife. Found the flat through a hopeless estate agent who really was not marketing the property very well!
The bank have confirmed that we CAN use this difference as part of the deposit. Thanks!
2007-02-05 22:04:53 · update #1
in theory yes but you will be extending your mortgage by that 6K and therefore increasing monthly mortgage rates and it depends whether your mortgage provider will let you...just for interest - where in the UK can you still get flats at that price?!
2007-02-05 21:23:31 · answer #1 · answered by K R 2 · 0⤊ 0⤋
Nope. Banks just wont take that risk, as there wouldnt be enough positive equity for them to fall back on. Its all about what your borrowing, not what the place is worth.
You may want to consider a 100% mortgage. You wont get a great rate but you wont have to worry about a deposit.
2007-02-06 05:21:47 · answer #2 · answered by Sir Digby Chicken Bhuna 3 · 0⤊ 0⤋
What an excellent find
No the deposit goes on the amount you are borrowing........
Corr I wish house prices were that low where I live its nearly two hundred thousand pounds for a 1 bed place
2007-02-06 05:26:44 · answer #3 · answered by xXx Orange Breezer xXx 5 · 0⤊ 0⤋
Not sure, but I think it can, if the seller is prepared to commit at selling at the higher price and refunding (on paper) the difference, providing your mortgage company confirms the mortgage for the higher amount.
2007-02-06 05:23:20 · answer #4 · answered by lynn a 3 · 0⤊ 0⤋
Unlikely as the value could change tomorrow and you could be in negative equity before you even start.
2007-02-06 05:21:26 · answer #5 · answered by Anonymous · 0⤊ 0⤋
no you need 15% of what your borrowing not the value
2007-02-06 05:23:05 · answer #6 · answered by steve 4 · 1⤊ 0⤋
You can't use the flat as equity till you own it. so no you can't.
2007-02-06 05:22:34 · answer #7 · answered by M1 5 · 0⤊ 0⤋
talk with the dialer to reduce it.
2007-02-06 05:23:34 · answer #8 · answered by Shahd 1 · 0⤊ 1⤋