Lender survey 72950. House price 84950

AnotherJoe

Wake_up_call wrote: »

So you've agreed to pay £7,000 over the asking price (which was probably overvalued to begin with) and you're asking why the lender's valuation is lower?

Err....

I believe you misread. He offered asking price but now after low valuation, is offering 7k over valuation.

Wake_up_call

If I’m reading this correctly, your situation is as follows:

Original purchase price: £84,950

25% deposit: £21,237.50

Mortgage required: £63,712.50

If you wish to retain a 75% product, this would reduce the amount you can borrow to £54,712.50

However, if you switch to a 90% product you can still borrow the same amount, just at a higher rate.

I assume you are going for a fee free deal (there’s no point paying a product fee on such a low borrowing as the difference between money saved between products does not cover the fee typically).

Santander’s current 75% two year fixed is 2.04%, making a £63,712.50 mortgage £271.00 a month.

However, a two year fixed at 90% is 3.14% making the payment £307.00 a month.

The difference is £36 a month, but you get to borrow the same amount and pay same amount of deposit (in cash terms).

All this said, I would take this opportunity to go in with a lower offer. Paying estate agent valuations (which are typically 10-15% overvalued) is madness, particularly at a time when there is talk for house price falls in the months ahead.