Would a bank lend on a house outside of their 90% and my 10%?

4 comments

1. You calculate the deposit % on the total value, not on the amount a bank will lend you. So on a £165k property, you actually need a £16.5k deposit to be 10%. If you only have £15k that’s only 9%.

   Anyway you’re asking whether you can borrow/pay deposits outside of the LTV bands? Yes you can, you just probably won’t benefit from any better rate until you hit the next LTV band.

2. Banks can only lend certain amounts based on income, too. I believe the maximum is x4.5 times your salary

3. You could buy a house worth £167k if you had a deposit of £16,700, assuming you also meet affordability criteria.

   If you had a deposit of £15k the bank would lend you £135k for an LTV of 90%.

   If you have more than a 10% deposit you’ll have a lower LTV.

   The answer to your question is yes, basically.

4. Sure, same as if you had £50,000 and the house cost £200,000, in fact they’d prefer that. Because now the loan is 75% of the value vs. 89%.

   Not too many banks saying no to more of a down payment.