What if...?

obviousftb

Hi,
Im a FTB and being a natural worrier, im really worried about the valuation (booked for next wednesday) coming back under what i have offered. I have an LTV of 65%.
Personally i think i have offered what the house if worth. This is coming from about 15 houses i have viewed in the past month within 2 miles of this property. However, a similar house on the same road sold for 10% less in feb this year. But other similar houses which were a tiny bit smaller on the same estate but different road also sold for around the as what i have offered this month. Im really worried the person who does the valuation will onlyt take into account the house on the same road that sold for 10% less and not the other properties in the same estate.
This is a dream home. If the valuation does come back -10%.. What are my options apart from negotiating with the seller (it was blood sweat and tears to get her to knock £5k off asking so i doubt she will budge) . Does my decent deposit size of 35% help? If so, how? Im confused of how the lender (nationwide) will take this? Will they then only lend me 65% of the lower valuation?

ACG

Depending on credit checks, affordability etc, if the property came back down valued then you would go on to a higher rate product.

There are no figures but lets assume £10k is 10% of the purchase price, that would mean you will not be offered 75% products.

obviousftb

Thank you! The property is £180. Im hoping the one that sold for £163 was a reposession... Would the lender lend me a smaller amount lets say 65% of the valuation figure and i will have to find another £18k myself? Ive seen on this forum that some lenders do that so im just fretting as i cant afford any more for the deposit.

ACG

You have asked the same question in a different way?
I will give you the same answer but in a different way...
Assuming you pass the credit checks you would be offered a higher LTV product which means a higher rate. There is the option to put down the extra and keep a 65% product but if you do not have the money to do that then you would go to a higher LTV product.

Thrugelmir

Little point in worrying until the valuation comes back.

ExpertAdvice

If the property is undervalued, then you would be offered the same amount (£117K) against the valuation which would most likely result in change of product due to higher LTV and higher interest rate than what you have been offered.

or you can keep the same product at LTV of 65% and find more cash to fill the gap between the asking price and the valuation price.

Hope it is clear

obviousftb

Great, thanks so much for explaining to me with patience! Fingers crossed now