HELP! Mortgage offer droped after valuation

rhionm

Had a mortgage booked with HSBC for £111,000 (Bought house 2 years ago for £129,000), we paid the booking fee and then they got the valuer to value our house but had a letter this morning saying the valuation only came to £110,000 and they could only now offer £99,000. Im convinced the house is worth more than that (as one of my friends had his house valued a few weeks back and that came to £120,000 and our house is in better condition, location etc)

What can we do next other than seek out a new moetgage and having to pay another booking fee??

Thanks

grogdog

very little you can do i am afraid, your friends valuation is of no relevance at all. mortgage companies will only appeal valuations if you can provide 3 comparisons of properties that have SOLD in the past coule of weeks, which in the current market is highly unlikely. if you are not borrowing any extra money it may be better trying to see if you can get a deal from your exisiting lender.

PoorDave

Is the friend's valuation by a surveyor or estate agent?

If it's an EA, a sale price of 110k for a list price of 120k might be reasonable, and explain why your surveyor is coming in at about that price

herbiesjp

You could try searching on a site like this one for actual sold prices - but HSBC will probably want details of 3 similar type properties in the immediate vicinity.

Even if you provide them with this information, when they refer it back to the surveyor, they are no guarantees that they will budge on their valuation

You'll probably want to run this past a whole of market broker, to see what they can find either with your current lender or with a deal that offer free legal fees and free valuation (and an arrangement/booking fee that you can add initially to the mortgage)