Inflated prices means banks won't lend on their valuations

amnblog

thestrayed wrote: »

It is so frustrating, especially as a ftb desperate to get on the property ladder. We have a 10% deposit and have just lost out on a 2 bed because the survey downvalued it by over £10k less than our offer and the vendor refused to budge whatsoever. We were almost at exchange stage as well :mad:

The lender may have just stopped you paying 10% too much.

Black_Eyeliner

In Scotland we have a different system whereby the house is valued before it goes on the market. But that doesn't mean it will sell for the value, it will sell for what people will pay for it. We just bought a flat valued at £155k for over £172k. There were nine offers on the closing date, and our offer was the highest but only by about £1k. It's just a fact that you have to make up the mortgage shortfall yourself.

CLAPTON

Black_Eyeliner wrote: »

In Scotland we have a different system whereby the house is valued before it goes on the market. But that doesn't mean it will sell for the value, it will sell for what people will pay for it. We just bought a flat valued at £155k for over £172k. There were nine offers on the closing date, and our offer was the highest but only by about £1k. It's just a fact that you have to make up the mortgage shortfall yourself.

I'm not familiar with the Scottish system but are you saying that there is one valuation made before a house goes on the market and all banks/BS except that valuation for mortgage purposes?

Black_Eyeliner

CLAPTON wrote: »

I'm not familiar with the Scottish system but are you saying that there is one valuation made before a house goes on the market and all banks/BS except that valuation for mortgage purposes?

Yes, that's exactly what happens.