Mortgage Valuation

dodgy

Hi,

We have applied for a 75% mortgage on a new build property. We can't stretch at all beyond the 25% deposit. First Direct have agreed that they would likely loan us the money subject to our documentation stating what I did on the telephone, and the valuation etc.

Is there any chance the mortgage company would value the house below what we paid and therefore only loan us 75% of their valuation fee rather than our purchase price? Or are these things usually fine?

We did some negotiation, the property was on for £424K a few weeks ago, they reduced it to £360 and we agreed to pay £336. The most recent sale of the same kind of home was in December for £355. Hopefully that will stand in our favour when it comes to valuations, but I want to be prepared!

Thanks

opinions4u

dodgy wrote: »

Is there any chance the mortgage company would value the house below what we paid and therefore only loan us 75% of their valuation fee rather than our purchase price?

They will use the lower of purchase price or valuation. If they value down, you should renegotiate your purchase price with the builder once again.