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House undervalued, but given mortgage..?

Last house we were going to buy was undervalues by £12k and we pulled out.

This time we're looking at a new build, which was brought down from 175k to 160k. When we went to see the lady at natwest she said she sold the same type of house, on the same site (2houses down), and it was valued by the valuers at 160k.

Our valuation came through the other day and it was valued at 145k, but they've said they'll lend us the money we need. The women was a bit suprised in Natwest, as were we. Has anyone had this before?

We're just a bit wary as we dont know if its a mistake or something? Obviosuly we're happy if its not. But just wondered id ask what your thoughts on it was.

Thanks
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Comments

  • Depends on the size of your deposit. Eg if you are putting 50% in then the bank will lend on £160K even though its valued at £145K as they know their risk is low as you make up the potential shortfall.
  • Fire_Fox
    Fire_Fox Posts: 26,026 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Have you looked at land registry sold prices yourself rather than looking at for sale prices? Can't see why you would want to pay more than the valuer says the property is worth, have you tried to renegotiate?
    Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️
  • Coded
    Coded Posts: 70 Forumite
    We're putting 20% up as a deposit. I thought they'd only lend us 80% of 145k, so 116k, instead of the 128k that we need.
  • 145k is a ridiculous valuation imo and in other peoples opinion.

    But like I said, the house a couple of doors down, exactly same spec, was valued as 160k.

    I think its a problem atm for buyers, no consistency with valuation and being undervalued to be careful.

    I cant see them renegotiating as it was meant to be 175k, then 165k, but finally came down to 160k.
  • Coded wrote: »
    145k is a ridiculous valuation imo and in other peoples opinion.

    But like I said, the house a couple of doors down, exactly same spec, was valued as 160k.

    I think its a problem atm for buyers, no consistency with valuation and being undervalued to be careful.

    I cant see them renegotiating as it was meant to be 175k, then 165k, but finally came down to 160k.

    New-builds are over-priced - when did the house valued at 160K actually sell?
    "You were only supposed to blow the bl**dy doors off!!"
  • New-builds are over-priced - when did the house valued at 160K actually sell?


    about 2weeks before we reserved ours
  • puddy
    puddy Posts: 12,709 Forumite
    but when was that? if its a good few months back then the price will have dropped further.

    if you bought a car and got the AA to do their check on it before agreeing a price (essentially what a survey is), and the AA said, its only worth 4k, not the 4.5 that you have offered subject to this check,,,, you would say to the seller, well its only worth 4k, i'll pay you that.

    wouldnt you???
  • It was about 3weeks-month ago. have prices dropped since then?

    Are valuers intentionally undervaluing houses though? Talking to others who have sold/bought recently, it just seems 145k is ridiculously low for the house.

    EDIT : Is it unusal for the valuation to be lower but natwest say fine anyway?
  • puddy
    puddy Posts: 12,709 Forumite
    well i would get them to double check it and then double check it again, but really i cannot understand why you are willing (it seems) to pay 15k more for a property than an experienced professional tells you it is. 15k!!!! have you any idea how much money that is??????????????????????????????????????
  • Pete111
    Pete111 Posts: 5,333 Forumite
    Mortgage-free Glee!
    jenner wrote: »
    but when was that? if its a good few months back then the price will have dropped further.



    Umm prices have been rising on all measures for 4-6 months.....

    I know new builds are not highly thought of right now but to assume this property will have automatically dropped during this period is a little odd.
    Go round the green binbags. Turn right at the mouldy George Elliot, forward, forward, and turn left....at the dead badger
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