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First time buyer - full panic mode!

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  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    KayTM wrote: »
    it's quite logical in some circumstances to pay a bit over the valuation for a property.

    What valuation are you referring to. The price agreed between the parties is not a valuation.
  • KayTM
    KayTM Posts: 106 Forumite
    Sorry, I don't understand the point of your question.

    The "valuation" I'm referring to is the value of the property as estimated by the buyer's surveyor and/or the lender's valuer.

    If the buyer chooses to pay more than that valuation, then that's up to them. There may be logical reasons why they might be happy to do so. But, as I said, they'll need to have the savings to pick up the shortfall. The lender won't!

    If I wasn't clear about the point I was making, then please explain and I'll try to clarify further.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    edited 17 September 2015 at 4:02PM
    KayTM wrote: »
    Sorry, I don't understand the point of your question.

    My misunderstanding. :o

    I appreciate why people feel the need to pay more. Also why vendors may feel reluctant to reduce the price further. Ultimately however it's the lenders money.
  • AlistairM
    AlistairM Posts: 97 Forumite
    Thrugelmir wrote: »
    My misunderstanding. :o

    I appreciate why people feel the need to pay more. Also why vendors may feel reluctant to reduce the price further. Ultimately however it's the lenders money.


    It's not the lenders money though is it?


    The lender will only lend on the valuation, take my house I'm buying for example.


    I made an offer of £280K on a house advertised at £285k. The valuation came in at £265K. The bank will only loan money against the valuation of £265K. That's why my loan is £198,750 (75%). They wont give me more. The extra money was made up by me.

    Unless you adjust your LTV amount in which case, the bank charges you a higher rate of interest.


    Is that what you meant?
    We love what we love. Reason does not enter into it. In many ways, unwise love is the truest love. Anyone can love a thing because. That's as easy as putting a penny in your pocket. But to love something despite. To know the flaws and love them too. That is rare and pure and perfect.
  • Dollydot
    Dollydot Posts: 4 Newbie
    Thanks for all of the advice. As expected nationwide did not change their valuation but the seller did budge and meet us halfway. Just waiting for formal offer from nationwide then hopefully (fingers crossed) it will go smoothly from there.
  • amnblog
    amnblog Posts: 12,728 Forumite
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    Congratulations Dolly, the valuer has saved you £5,000.


    Less than two weeks for sense to prevail.


    A lesson there for FTB's.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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