Hi All,
I'm new around here, and have already found this forum to be invaluable. I'm actually relatively new to property investing (though I have 3 properties), so please forgive this probably basic question:
Say I find a property and negotiate a 20% below market discount, given that a mortgage broker will loan up to 85% of the market value, do I actually need a deposit at all? For example, say I found a property with a market value of 100k, and I agree a purchase price of 80k. Would I be allowed to borrow 85k from the bank, putting down no deposit for the purchase, and keeping the remaining 5k to use to cover purchase costs, a bit of profit, etc?
If I can do this, could someone please (on bended knee) give me the contact details of a mortgage broking company that can arrange this?
Many Thanks
Albert

Hi Albert,
Some lenders lend on purchase price and not valuation, so if you could get the lender to lend to you at valuation price of 100k yes, that is if it values up to that and is a genuine discount, but otherwise they will lend you 85% of the purchase price of 80k.
I believe that is right Charles. I did it with a property in Scotland, it was valued at 28k...don?t laugh, that is correct, but I was buying for 21k, so the bank actually lent to me the 21k, 80% of valuation.
So in effect I got the property for no deposit....I wished I could do that more often...
Cheers
Ryan