r/Glasgow Tools

Title
Author	jbjamfest
Comment	In a perfect world where you bought a house for the value on the Home Report, and had no other fees to pay, you could buy a house for roughly £158,947. The bank would pay its maximum of £151k/95% and you would pay the rest. However, this situation is incredibly unlikely. Some things to remember: 1) The bank will pay out a MAXIMUM of £151k, or a MAXIMUM of 95% - whichever is lower. 2) That maximum will be based on the HOME REPORT and not what the property actually goes for. 3) Lately, the housing market is mad and houses are going way, way over their Home Report valuations - you should expect to spend at least 20% over the valuation. Given all these factors together, the likelihood of you buying a property with only 9k deposit is essentially nil. It’s a stupid situation and I’m sorry! Plus you haven’t mentioned any savings for all the other costs: Solicitors fees, moving costs, set-up fees, essential furniture (e.g. fridge). You’re looking at at least a couple of grand for all these things. (And, ideally, you would have enough saved for several months of mortgage and bills as well.) If the Home Report gives a valuation of £127,158, and then the house actually goes for a very possible £151k, then the bank would give you £120,800. You would then have to essentially immediately pay the difference between these numbers as your deposit - £30,200. With only 9k, the most you could buy would be a property going for less than 40k, which you are really not going to find in Glasgow and you probably wouldn’t want it even if you could! Source: Bought a house in November 2021.
Reddit Link	https://www.reddit.com/r/glasgow/comments/u2vku9/mortgage_in_principle/i4mzoj8/
Created	Thu 14th Apr 2022 1:26am
Status	normal ()

In a perfect world where you bought a house for the value on the Home Report, and had no other fees to pay, you could buy a house for roughly £158,947. The bank would pay its maximum of £151k/95% and you would pay the rest. However, this situation is incredibly unlikely.

Some things to remember:

1) The bank will pay out a MAXIMUM of £151k, or a MAXIMUM of 95% - whichever is lower.

2) That maximum will be based on the HOME REPORT and not what the property actually goes for.

3) Lately, the housing market is mad and houses are going way, way over their Home Report valuations - you should expect to spend at least 20% over the valuation.

Given all these factors together, the likelihood of you buying a property with only 9k deposit is essentially nil. It’s a stupid situation and I’m sorry!
Plus you haven’t mentioned any savings for all the other costs: Solicitors fees, moving costs, set-up fees, essential furniture (e.g. fridge). You’re looking at at least a couple of grand for all these things. (And, ideally, you would have enough saved for several months of mortgage and bills as well.)

If the Home Report gives a valuation of £127,158, and then the house actually goes for a very possible £151k, then the bank would give you £120,800. You would then have to essentially immediately pay the difference between these numbers as your deposit - £30,200. With only 9k, the most you could buy would be a property going for less than 40k, which you are really not going to find in Glasgow and you probably wouldn’t want it even if you could!

Source: Bought a house in November 2021.