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Deposit query

rfeenie
rfeenie Posts: 124 Forumite
Part of the Furniture 10 Posts Combo Breaker
in Mortgages & endowments
Hi

Could someone help answer this questions please.

Example: We are in Scotland and have managed to buy a house for £190000, this is £10000 less than the house valuation of £200000.

When we get our mortgage can the £10000 that has been saved be used as a deposit as that is already equity in the house ( assuming bank morttage surveys also say house is valued at £200000)?

Thanks

Rob

Comments

  • House_owner
    House_owner Posts: 272 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    It is very unlikely that the the mortage survey will value the house as being worth more than you have paid for it.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    in england and I would image in scotland too, the mortgage company will base their offer of a mortgage of the lesser of the agreed selling price or their valuation
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    If the vendor was selling at £200k, and gifting you the £10k then possibly.

    If you are buying at £190k, then no.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • rfeenie
    rfeenie Posts: 124 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Hi

    Thanks for the replies. Not really any clearer though!

    Herbiesjp, say the home report( HIPS) values the house at £200k but the owner wants a quick sale and accepts £190k does that make any difference?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    rfeenie wrote: »
    Hi

    Thanks for the replies. Not really any clearer though!

    Herbiesjp, say the home report( HIPS) values the house at £200k but the owner wants a quick sale and accepts £190k does that make any difference?

    No. The value of the house is what you actually offer to pay for it. Even then a valuer may disagree and value it lower for mortgage purposes.

    The valuer merely protects the lenders interests to ensure that the property provides security for the amount advanced.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    rfeenie wrote: »
    Hi

    Thanks for the replies. Not really any clearer though!

    Herbiesjp, say the home report( HIPS) values the house at £200k but the owner wants a quick sale and accepts £190k does that make any difference?


    what's unclear about my previous post?
This discussion has been closed.
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