' Offers over' rules and mortgage application

9ice

In Mortgage application process, if I make an offers over the valuation price,how common is it for the lender to lend the exact purchase amount?
For example in Scotland,valuation would have been done by the vendor prior to purchase. In the event that I made an offer on a property that has a closing date, and my offer is like 5k over the valuation price, would the bank recognise this or they would only lend on what is on the valuation

Many thanks

ACG

They would lend up to xx% of the valuation or the purchase price (whichever is the lower).

The xx% would depend on the lender and the deals available. Typically it would be 90% as a maximum. Anything over and above the valuation would need to be met by the buyer.

9ice

Ok thanks ACG , I am still very confused guess I need to be more explicit
Supposing property was valued at 200,000 and am doing 90% LTV.
So my deposit is 20,000 right and lender is doing 180,000? If I made an offer for a property of 205,000 on the property, does it mean lender will lend me 90% of 205,000 or 90% of what was recognised on the valuation I
Thanks

googler

9ice wrote: »

Ok thanks ACG , I am still very confused guess I need to be more explicit
Supposing property was valued at 200,000 and am doing 90% LTV.
So my deposit is 20,000 right and lender is doing 180,000? If I made an offer for a property of 205,000 on the property, does it mean lender will lend me 90% of 205,000 or 90% of what was recognised on the valuation

They'll lend you the lower of - 90% of valuation, or - purchase price.

If you offer £205,000, lender gives you £180,000, you find £20,000 + £5,000

Unless you're buying in a unique area (Aberdeen?), why would you offer over the valuation?

9ice

@ Googler thanks Yea it's Aberdeen. These days it's becoming survival of the fittest in Aberdeen. I was outbid by over 10k valuation on a property recently, I guess I'll keep no renting then .