VALDOS' Posted June 23 Share Posted June 23 Can anyone advise on the situation of a mortgage valuation against the home report valuation. In other words if the Home Report states 280k but the purchase price is 300k, will the lender calculate a mortgage based on the 280k and you would need to make up the difference (20k) from your own funds? If that makes sense. Quote Link to comment Share on other sites More sharing options...
Dennis Reynolds Posted June 23 Share Posted June 23 Yes you are correct. Quote Link to comment Share on other sites More sharing options...
Bigsmak Posted June 23 Share Posted June 23 3 hours ago, VALDOS' said: Can anyone advise on the situation of a mortgage valuation against the home report valuation. In other words if the Home Report states 280k but the purchase price is 300k, will the lender calculate a mortgage based on the 280k and you would need to make up the difference (20k) from your own funds? If that makes sense. Yes - The bank will only lend against the 'Value' of the property not what you actually paid for it. If you put yourself in their shoes - Imagine a friend wanting to borrow money from you to buy Object A - This is valued at £100 - they promise you that if they miss repayments, they will give you Object A to cover the loan off. Now you wouldn't lend them more than £100 as you have been told thats what the value is and if they miss the payments you need something that is worth what you lent. If your friend choses to pay £120 for the Object.. thats his choice. So for a mortgage, all the calculations - 80% or 95% whatever, is always based on the home report! Quote Link to comment Share on other sites More sharing options...
jambo89 Posted June 23 Share Posted June 23 5 hours ago, VALDOS' said: Can anyone advise on the situation of a mortgage valuation against the home report valuation. In other words if the Home Report states 280k but the purchase price is 300k, will the lender calculate a mortgage based on the 280k and you would need to make up the difference (20k) from your own funds? If that makes sense. Yes, having just bought / got a new mortgage myself, they will only lend 80% - 90% of the home report value (there are some 100% mortgages I believe) Quote Link to comment Share on other sites More sharing options...
1971fozzy Posted June 23 Share Posted June 23 It’s a nightmare for buyers at the moment. House valued at £200,000 but goes for £250,000 buyer can only get a mortgage on 80% (for example) of the £200,000 so would have to find £90,000. As an example. Nightmare for first time buyers Quote Link to comment Share on other sites More sharing options...
Jeff Posted June 23 Share Posted June 23 2 hours ago, 1971fozzy said: It’s a nightmare for buyers at the moment. House valued at £200,000 but goes for £250,000 buyer can only get a mortgage on 80% (for example) of the £200,000 so would have to find £90,000. As an example. Nightmare for first time buyers Is the help to buy scheme not a thing anymore? Found that very helpful when starting up Quote Link to comment Share on other sites More sharing options...
1971fozzy Posted June 23 Share Posted June 23 17 minutes ago, Jeff said: Is the help to buy scheme not a thing anymore? Found that very helpful when starting up 👍 Quote Link to comment Share on other sites More sharing options...
VALDOS' Posted June 24 Author Share Posted June 24 Cheers for all the advice, I kind of figured this would be the case, but did wonder if you could get a separate mortgage valuation done to bump it up a little. Anyway, it definitely looks as though I'll need to go 10-15k over the home report value, I've missed out on a few now by only going 5 or 6k over. Quote Link to comment Share on other sites More sharing options...
milky_26 Posted June 24 Share Posted June 24 8 minutes ago, VALDOS' said: Cheers for all the advice, I kind of figured this would be the case, but did wonder if you could get a separate mortgage valuation done to bump it up a little. Anyway, it definitely looks as though I'll need to go 10-15k over the home report value, I've missed out on a few now by only going 5 or 6k over. friends of mine have missed out and they went 40k over asking price Quote Link to comment Share on other sites More sharing options...
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