This is going to sound very stupid but it's something which has just popped into my head

In the new year I'm going to look into buying my first property and have been given a mortgage quote of £160,000 based on a 5% deposit.

The question I have is how exactly is the figure I can spend calculated, for example if I put down an £8,000 deposit is this included in that £160,000 figure so the actual borrowed amount is £152,000 or is it in addition to the borrowed amount so the total amount would be £168,000?

As I say that probably sounds like a really stupid question but I have no idea about these things

Cheers

David

 

Usually you're asked the value of the property and the amount of your deposit. The mortgage is then the remainder i.e. £152,000.

 

FB.....

 

Is there no paperwork with the quote showing how it's broken down? I would expect that they are willing to lend you 160k based on you fronting 8k so your total budget would be 168k not forgetting the legal costs of purchasing as well of course.

 

Are you buying a nice shed ?
Does it come with a lawnmower ?

 

The quote will show on page 1 towards the bottom of the page the loan amount and the property valuation - if it's a quote (KFI) produced since 01/10/04.

HTH

Matt