Mortgage - house valuation issue

SteveSS

Hi all,

Recently made an offer on a house in a desirable location where few houses come to market. All was going well until today when the valuation came back lower than expected.

Offer accepted was £225k, valuation came back at £200k. We are first time buyers and therefore require a 90% LTV mortgage, meaning we can now borrow to a max of £180k through this particular lender - Virgin Money. The company instructed to do the valuation was Connells. Because so few properties come to market we're unable to provide supporting evidence of other similar ones that have been sold at an equivalent price.

Our options now are to go with a different lender or pull out as we don't have the capital to fund the difference. The difficulty being we've already had one credit search done to get this far and presumably there's a risk that we'll end up with the same company/person doing the valuation again.

Has anyone had any experience of this that could provide some advice please? The house is ideal for us so we are willing to consider other lenders, however need to weigh the risk of applying for a mortgage twice in a short space of time and the possibility of the same surveyor being enlisted.

May also be worth mentioning that the amount we're looking to mortgage is towards the lower end of what we could potentially borrow.

Thanks

shimano

You have two options

A) Knock the price down
Go to another lender

You should try A first I would say...worse they say no then you resort to B if you really think its worth more than 200

SteveSS

shimano wrote: »

You have two options

A) Knock the price down
Go to another lender

You should try A first I would say...worse they say no then you resort to B if you really think its worth more than 200

Knocking the price down isn't an option as the were other offers on the table for the same amount - the vendor has been open about this. They chose us simply because ours was the first offer at an acceptable level and we can move to their timescales.

There are other houses in the area that are similar (but not directly comparable) on the market for £190-£200k that require a significant amount of work.The house we're buying has been extended, has had an all new fitted open plan kitchen installed and is in good repair.

I'm exploring option B but obviously don't want to end up with the same valuer.

I recognise that there could be some difference in valuation, however £25k (>10%) seems excessive.

Thanks

amnblog

If someone else wants to pay £225,000 for a property worth £200,000 let them - as a FTB you cannot afford to.


Offer to complete on a £200,000 price and move on if they wont have it.


You will find a better deal.