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House valuation higher than purchase price
Halifax mortgage valuation came back at 80k
With everyone saying its never higher than purchase price im confused
Our mortgage advisor said that we wont have to put as much of a deposit down but we were only putting down 5% the minimum anyways
Does the valuation factor into the LTV ratio then....
Help
Comments
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If you're getting a 95% LTV mortgage product...
The maximum loan will be 95% of purchase price or valuation - whichever is the lower. So in your case, it's 95% of £70k.
It's really scary if your mortgage advisor doesn't know that!0 -
Exactly what I thought!
We have an appointment on Friday so will see then and update.
Its just playing on my mind what he said0 -
This is all fine from your perspective, your mortgage will still be 95% of 70k, with the added bonus that when you come to remortgage you can have it valued and be at a lower LTV (as apparently 80k is your start point).
It's unusual for the valuation to be more than the purchase price but not impossible. It sounds like you must be getting a very good deal.0 -
Our Lenders valuation came out more than the purchase price too, only £5k, so I guess it does happen sometimes though I cannot help with any LTV ratios, sorry!0
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Is the vendor selling through an agent or through an online cheapie? If the latter, there's an obvious possibility that the asking price might be too low because nobody with local knowledge has valued it properly.
Or was it priced to achieve a quick sale? Or a probate sale?0
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