House valued less than expected

jamesybravo

I applied to re-mortgage my house 2 weeks ago and guessed my house would be worth around £120,000 when applying, We were given a fixed rate of 6.39% for 2 years based on the £120,000 I guesstimated.

My house was valued at £110,000 today and i was just wondering how big a difference this will have? I've never done this before so have no idea what to expect.

Will they raise the rate or, even worse, deny me the mortgage?

Thanks in advance,

James

lynnexxxo

Hi

I think it will depend on how much you are looking to borrow.

Are you wanting to remortgage for 120, or less

wymondham

I think we are going to see a fair few of these type questions coming up ...
I'm sure someone will be along shortly to give you the options, which I would imagine all depend on how much your mortgage is for in relation to this new valuation..

sniperpenguin

James,

It all depends on how much you owe on the house (if anything) - pretty much nobody will lend you more than what they can recoup by repossessing the house.

Why are you remortgaging - a better deal or you need the cash?

jamesybravo

Sorry forgot to metion, I'm borrowing £105,000.

Currently with Northern rock interest only, looking to go onto repayment basically.

wymondham

You should be ok then if you're after less than the valuation - it's getting close though...

kd811

you should be able to take upto 95% of the value..however NR's rates chnage depending on the loan to value..i.e how much you borrow..better rates are availble for those only atking 85%