What figure will a lender work on if we're buying my mother-in-laws house under the market value?

Posted on 29 April 2013 by Andrew

My wife and I are being given the option to buy my mother in laws house for £200,000. It has been valued at £230,000, however. We have a £30000 deposit. Would a mortgage company base its decision of whether to lend to us on the sale price or how much a surveyor says its worth?


Lenders base their figures or the purchase price or valuation, whichever is the lower. However, many lenders do look at "family concessional purchases" where someone is looking to buy from a family member at a below market figure.

These mortgages can be arranged but I'd need a lot more information around the case and your personl financial situation before I could give a more definite answer.

If you'd like to explore your options in more detail, then please let me know and I'll put you in touch with one of consultants to see how best they can help you.




More than mortgages, talk to me about:

Financial Protection | Investments | Personal and Corporate Pensions | Home Insurance

General Insurance | Valuations | Conveyancing | Wills | Home finders

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

You are currently offline. Some pages or content may fail to load.