Ftb - how likely are we to be accepted

First_time_buyer_lauren

Hi,

We got an AIP from our mortgage advisor with Santander and put an offer in for a house which was accepted.

MA submitted our application on Monday (8 may) and a valuation was done on Thursday, we are expecting / hoping to hear wether we have been accepted next week. The house was priced at £239,950 (massively overpriced) and we agreed an offer of £212,000. We gave applied for a mortgage of £165,000 as we have the rest saved / being gifted . How likely are we to be accepted or even offered the amount we have asked for ? I am less worried about the application than the fact that another estate agent said they had priced the house at £200,000, what if the bank have valued it at that? Are we still in for a chance with our big deposit or do they not take that into account ?
Thanks
Lauren

glosoli

If the property was down valued then essentially the bank would work from £200,000. Your deposit from a mortgage perspective would be £35,000, and you would be required to make up the difference with the solicitor, i.e the £12,000 to make up the full purchase price. It would likely mean a higher rate of interest, as your loan to value band would be going up from 78% to 83%.

It shouldn't really be an issue to be honest unless you are restricted to a maximum loan to value for some reason, for example if the property was a new build flat.

In terms of your other question, it is difficult to say as you haven't give much other information about your income etc but your mortgage adviser should keep you in the right.

First_time_buyer_lauren

Thank you for your reply.

Our combined income is around £38,000 my partner is self employed, we have 2 dependants, but no childcare as my job is small (around £500 per month but flexible hours so I can go when dad gets home from work)

No debts or any missed payments in the past, on the electoral roll at our current rented property for 8 years, no big outgoings or spending sprees.

I'm just in panic mode because it's weekend and I know I'm not going to hear anything until next week and we are absolutely in love with the house, perfect size and location close to my sons school which I was hoping to get my daughter into.

After the valuation was done on thurs they did request a copy of my contract of employment which I'm hoping is a good sign as it wasn't a no. Do they get the result of the valuation straight away?

Thanks again, lauren