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Mortgage valuation advice required
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ceh209
Posts: 877 Forumite
OH's mum has just had valuation back on flat she wants to buy - her offer was £125k and the valuation is £120k. Her initial offer was £120k and was rejected so not too hopeful that the vendors will drop to that, but we're working on the 'every mortgage valuation will say the same' angle with them...
Is it do-able somehow if they won't drop the price? OH's mum, 54, has approx (yes I know exact figures will help but OH is being cagey!) £75k deposit, then wants to borrow £35k repayment and £15k IO (to be paid off with pension lump sum when she retires).
Any suggestions welcomed... She is absolutely desperate to get out out her current place after a divorce so really want to help her out here!
Is it do-able somehow if they won't drop the price? OH's mum, 54, has approx (yes I know exact figures will help but OH is being cagey!) £75k deposit, then wants to borrow £35k repayment and £15k IO (to be paid off with pension lump sum when she retires).
Any suggestions welcomed... She is absolutely desperate to get out out her current place after a divorce so really want to help her out here!
Excuse any mis-spelt replies, there's probably a cat sat on the keyboard
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Comments
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If she wants to go ahead at the higher price then the figures you gave are fine. The £5k lost on the valuation should make no difference whatsoever to a mortgage lenderI 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.0 -
At the moment she is asking to borrow 40% of the agreed sale price, or 41.67% of the valuation price. If (somehow) she's found herself a mortgage product that will only lend 40% of the valuation, then she should try applying for a different mortgage which lends on higher LTVs.
However, I'm not aware of any mortgages that have such a low LTV cut-off - most lenders are happy once deposits reach the 30-40% range. As Betmunch says, the low valuation shouldn't really make any difference to her lender's decision to lend £50k.0
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