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VALDOS'
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VALDOS'

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.

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Bigsmak
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! 

 

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jambo89
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) 

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1971fozzy

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

 

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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

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1971fozzy
17 minutes ago, Jeff said:

 

Is the help to buy scheme not a thing anymore? Found that very helpful when starting up

👍

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VALDOS'

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.

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milky_26
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

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