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Hi I'm a first time user so please be gentle :lol:

Ok so I will be applying for my first mortgage in June 2017 however I'm struggling to find info on the Loan to Value (LTV)

I currently live in my brother in laws house, the house is worth around the £170-175k mark however my brother in law said he will not profit from family so is selling it to use for £145k.

My question is will the mortgage LTV be based on the £170-175k or what I'm paying for the house which is £145k, I will have around £17k deposit come June making my mortgage £128k.

So will my LTV be 88.28% based on the price I'm paying or will it be 75.29% based on the houses true value.

The only reason I ask is because the interest rate will be better based on the lower LTV

Thanks in advance.

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Based on the price you are paying. The "worth" means nothing - though at some later point while you have your mortgage you can ask the mortgage company to revalue your property if you think it is worth more than you paid and they will effectively change their value of it, hence lowering your LTV for when you switch product/remortgage.

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