property "down valued" ?!?! PLEASE HELP

homer_j_3

So you were to pay a deposit of £14500 (127000-112500) and the house has been downvalued to 125k.

Using the same deposit you should be looking at a mortgage of £110500 so £106750 means that you are £3750 off the target.

I understand that the issue could be just a admin error on behalf of the lender. If you are really worried, you may be able to get hold of the customer service people for the lender today, even if your broker isnt working. I wouldnt normally suggest getting involved in this way but if its going to ruin your weekend then a quick call may put your mind at ease (or worry you further).

When I organised my own mortgage, I had mistakes made on the offer and it was just somebody had miskeyed the information wrongly into the computer system. It does happen.

Try not to worry too much and let us know whether you have sorted it or not

callansdad

Sorry if this is completely wrong but just a thought. We took 2 years to buy a house and everytime we got an agreement in principle then when the survey is fine we get a proper offer and everything is signed etc....

Going what your first post said what you have is the agreement in principle. These are never set in stone, so if you go for a 90% mortgage after they receive the property survey they properly credit score you and take this into account along with the details of the survey and then they tell you what they will be willing to offer you on all these things.

I know it seems an awful lot of hassle over 2k. We were interested in a property once and decided the max we would pay. We got our agreement in principle went off and got our survey which showed that there was additional work needing done which downvalued the property. The property was up for sale at O/O £85,000. The man who owned it was a property developer and apparantly renovated it himself and we had agreed with him that we would buy for £82,500. The bank was going to give us roughly £74,250 but after the property being surveyed at £69,000 they would only give us £62,100! Needless to say we didn't buy it.

HTH


Forgot to add, good luck with your new arrival. We finally got a house a year ago and 4 days after i moved in our daughter appeared a week overdue. Don't strain yourself and leave all the men with the move!

Jorgan_2

Has the property been down valued for any particular reason? Are there any items of workrequired?

Best of luck for sorting this out with your broker on Tuesday.

AndrewSmith

You definately need to contact your broker first thing on Tuesday.

Some of the reasons for down valuing and asking for increased deposit are:

Property construction, some lenders will only lend a maximum percentage based on the builder or property construction.

Information coming to light following further referencing ie lender/landlord references, employer references, asessment of your bank account statements etc which would not have been done at agreement in principle stage.

Any change in circumstances between the agreement and full application.

Condition of the property ie, works needed immediately etc.

Outright Error on their part (most common).

At the end of the day the lender always reserves the right to refuse, restrict, or add condition to any mortgage application prior to drawing the funds. I suspect in your case it may be an error on their part in which case it will be resolved in the time it takes to re-print a mortgage offer and post it to you.

Let us know what happens

Andy

sunflower_2

thanks again for replies - i really appreciate the help and support

there was no reason for the down value of £2k, it just seems a bit petty?!
nothing is wrong with the house, just the value of it

i was told that the credit searches and scoring had already been carried out at the agreement in principal stage?

have tried to look for a number to call the lender but they dont have one, its mortgage express and they only deal with brokers

i feel sick with panic today for some reason, sometimes i feel confident everything will be ok, then suddenly i feel really down and sick as a chip

homer_j - we are buying the house for £127k and were loaning 90% of £125k, meaning we were paying £14,500 deposit in total - £12,500 plus extra £2000
they are now saying that because the house is only wirth £125k they will lend £106,250?
this means we would now have to pay a deposit of £20750, an extra £6250 which we simply cannot do

fingers crossed that someone just got confused with us paying the £2k extra and thought we had been offered an 85% mortgage instead of 90%...
£112500 was the maximum they would loan based on income

i will be ringing them first thing on tuesday - i hope they arent hungover!!

sunflower_2

just a thought (or glimmer of hope)

the actual e-mail said
"Just to let you know Mortgage Express has received the valuation report back today and the property has been down valued to £125,000. Therefore the maximum amount they can now lend is £106,250.

Can you please advise whether you are happy to proceed on this lower amount."


so am i right in thinking that the sole reason for the reduction is the valuation?

they arent mentioning anything about further credit searches or any other reasons? their agreement in principal did state that these had all already been carried out

so it may just be - as i hope - someones simple error......

aaarrrggghhh its driving me mental i could cry

[Deleted User]

Sounds like someone, either the bank or your broker, made a mistake. You requested a 90% mortgage, you got it and after the valuation you were offered an 85% mortgage. It doesn't make sense.

sunflower_2

i know - it doesnt make sense at all

i wouldnt have paid for a survey for an 85% mortgage, i would have went elsewhere

just unfortunate that time is ticking...

MortgageMamma

Sunflower look at your key facts document for the mortgage (the quote), underneath the product details it should say

maximum loan: 90% of the property value or purchase price, whichever is the lower.

This should let you know if the brokers put you on the right product or not.

sunflower_2

MortgageMamma wrote:

Sunflower look at your key facts document for the mortgage (the quote), underneath the product details it should say

maximum loan: 90% of the property value or purchase price, whichever is the lower.

This should let you know if the brokers put you on the right product or not.

it says

"The mortgage is available to a maximum of 90% of the property valuation or purchase price, whichever is lower".