Mortgage/LTV question

[oohsneaky]

Hypothetical situation: Say you have a house valued at £100K, mortgage agreed of 60% LTV. What if the seller were to sell for half of the property value?

[Gareth79]

Normally they lend for 60% of the value, or purchase price, whatever is lower. I think some will make exceptions for sales from family, where they are gifting the difference.

[oohsneaky]

That's pretty much the scenario here - inter-family sale, no deposit, difference between value and mortgage being gifted to purchaser...

Cheers!

[JRM]

Don't forget you pay stamp duty on the market value and not the purchase price, just in case that is part of the driver