Paying over Home Report value (Scotland)

scottishgirl87

We sold our flat back in September and have unfortunately have been living with my parents ever since due to pretty much everything in our areas going to a closing date and then selling for 5-10% over Home Report value.

Am I right in thinking that, for example, if a house has an HR value of £200k but we have an offer accepted at £210k then we’d only be able to get a mortgage for (most likely) 90% of £200k? So we’d have to pay £20k deposit (10% of HR value) plus the additional £10k in cash meaning deposit of £30k total.

Hope that makes sense!

scottishblondie

You are correct, you would need to make up the excess amount above the HR value yourself on top of the 10% deposit for the mortgage based on the HR value. The lender will only offer a mortgage based on the lower of valuation or accepted offer.

scottishgirl87

Thank you! That’s what I thought but started to think I was wrong...