Buying a house for less than the home report valuation

rgwhunter

Hoping someone can help me with this, i live in Scotland so every house for sale has a home report which states the properties valuation. If i bought a house valued at £200 000, for £150 000, would i only need a 75% mortgage? and because i'm buying the house for less than the valuation would that mean i wouldnt have to have any 'hard cash' other than fees to get the mortgage?

New arrivals mean im looking for a bigger house but have very little equity in my current property, there are a few houses on the market for quite a bit less than the home report valuation.

19lottie82

Sadly,no. Your mortgage has nothing to do with the home report valuation. Your mortgage is only concerned with how much you PAY for the house. If a house was valued @ £1,000,000 and you managed to get for £100,000, you'd still need a minimum of £10,000 for a deposit on a 90% mortgage, or £20,000 for an 80% mortgage. And so on......

rgwhunter

wishful thinking then!

dimbo61

Watched all them programmes like Location, Location, Location, and escape to the country and thought that everyone put in sealed bids and paid WAY OVER THE ASKING PRICE in scotland.
Not the case anymore ?

MagicCats

dimbo61 wrote: »

Watched all them programmes like Location, Location, Location, and escape to the country and thought that everyone put in sealed bids and paid WAY OVER THE ASKING PRICE in scotland.
Not the case anymore ?

Possibly in certain areas for certain property, but in general it's no longer the case. Most property enters the market at a fixed price, or offers around, both of which tend to be just on, or under the HR valuation.

Owain_Moneysaver

However if the house is less than the valuation then you have a lower loan-to-value ratio so your lender may let you have a slightly lower deposit eg if you have a £20k deposit and would normally need 20% you could borrow £80k and buy at £100k, with the lower valuation your lender might allow you to borrow a bit more so you might stretch to £105k or £110k

rgwhunter

Thanks for your help !