Home buyer report and lender valuation

hounsehunterftb

Hello All,

I have two questions! Please do let us know if you could share your insights. Thanks for reading.

We got our valuation done yesterday and also ordered for our home-buyer report from the same surveyor who did the lender's valuation.
1. Would the surveyor give the same valuation to the lender for the house which we got in our home buyer survey?
2. The valuation is exactly equal to our offer price. And we have 10% deposit with 90% LTV. What are our chances of getting accepted for the mortgage? (Assuming our credit history and documentation is all great)

Thankfully its not lower but its exactly the same. Would the lender be sceptical to lend us 90% LTV for this property?

Sorry for blabbing! Any insights or experiences you could share would be helpful. Thank you!

Regards,
hounsehunterftb

FIRSTTIMER

its normal for valuer to just agree with sale price more often than not

Strummer22

FIRSTTIMER wrote: »

its normal for valuer to just agree with sale price more often than not

I do wonder... does the valuer therefore know the purchase price? Do they base their valuation more on similar sales and market conditions, or on the particulars of that individual house (or a combination?)

FIRSTTIMER

Yes they are told the purchase price and the sale price on rightmove - mine was

ruperts

You could argue that house valuation is not an exact science and that a house is ultimately worth what someone is willing to pay, so if you're willing to pay £X then it's worth £X. I think unless your offer is obviously way too high or way too low then the valuation surveyor will usually stick with the purchase price.

I can't think of any reason why a valuation that matches your offer would have any negative impact on the mortgage application presuming you've applied on the basis of it being 90% LTV. It'll just be a tick in a box so if your credit report is in order the success of your application will come down to affordability.

hounsehunterftb

ruperts wrote: »

You could argue that house valuation is not an exact science and that a house is ultimately worth what someone is willing to pay, so if you're willing to pay £X then it's worth £X. I think unless your offer is obviously way too high or way too low then the valuation surveyor will usually stick with the purchase price.

I can't think of any reason why a valuation that matches your offer would have any negative impact on the mortgage application presuming you've applied on the basis of it being 90% LTV. It'll just be a tick in a box so if your credit report is in order the success of your application will come down to affordability.

I always thought that valuation means stating the current market price for the house from a general perspective. I didn't know that in most cases they just match the price one is willing to pay.

Doesn't that seem unfair from the lender perspective too?

Thrugelmir

hounsehunterftb wrote: »

I always thought that valuation means stating the current market price for the house from a general perspective. I didn't know that in most cases they just match the price one is willing to pay.

Doesn't that seem unfair from the lender perspective too?

The lenders valuation is to ensure that the property provides adequate security for the money being advanced. The purpose is not to second guess what some else may offer for the property and the seller accept.

ThePants999

Yeah, the valuer is really sent with a question of "is the property worth X", where X is what you're paying for it. If they think "yeah, pretty much", their valuation will state X. E.g. if you're buying for £246,520 and they reckon it's worth "245-250", the valuation will come back saying "£246,520", they won't waste time putting lots of thought into whether it's 245 or 250.