| Comment | They'll lend you £142500 on that property, because that's 95% of the value. You then need to pay the other £7500 as your deposit.
The maximum they'll lend you for any property is £151000, which means that the most expensive property you can offer on is one with an HR value of £151000/0.95 = £159000, with you paying the other £8k as a deposit.
Bear in mind you'll also need to pay conveyancing fees (about £700) and any other solicitor's fees, plus 2% of the amount of the sale over £145000 as stamp duty.
Anything you want to offer over HR will have to be in addition to all that, and straight out of your pocket (i.e. you can't borrow it, and you need to show where it's coming from). So if you have £9k savings it doesn't sound like you'll be able to offer over at all. |
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