Owning your own home

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deleted in reply to @Jaaamie
Any shortfall on the value you would need to make up with cash.

Worked example:
- you bid £380k with £80k cash on hand
- Lender values at £350k
- £30k of your deposit would go towards bridging the value gap (380- 350 = 30)
- You would be left with £50k deposit on a £350k valuation, i.e. £50k deposit, £300k loan, LTV of 14%.
You could probably find a mortgage at this LTV, but you would obviously have a higher interest rate.

I have done you a sensitivity table:

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Jaaamie in reply to @deleted

Ahh I see - I think the bit I was getting lost is that we would still be able to get the necessary mortgage with remaining deposit. It would just be a worse interest rate - we wouldn't necessarily be completely out of the purchase.

Thanks very much, big help

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deleted in reply to @Jaaamie

I added a table - it does look challenged if the valuation fell below £340k, as you would probably struggle to find a lender who would offer less than 10% LTV

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