Generous valuation!

lizhd

We have an application in with HSBC for a mortgage on a property that was advertised at £400k. We had an offer accepted at £390k. The valuation was done today (a desktop valuation rather than them physically attending) and has come back with a valuation at £402k. I'm really pleased that HSBC thinks we have saved £12k, but it seems unusual to me - I thought that the norm was that the valuation either came back at the price paid, or lower. The valuation at £402k moves us into a different LTV bracket. Does this mean we could be offered a lower interest rate? I'm told by the broker that we'll get the mortgage offer on Tues or Wed next week (it didn't occur to me re the change in LTV when we spoke earlier, hence asking here.

davidmcn

lizhd said:

The valuation at £402k moves us into a different LTV bracket.

No it doesn't. The "V" is the lower of the surveyor's valuation and whatever price you've agreed.

lizhd

Ah, fair enough. I thought maybe HSBC had weirdly done us a favour with the valuation being higher than the price we paid. Thanks for clarifying. Makes sense.

SimonBck

How did you find out the valuation figure? Our mortgage offer is through HSBC. 

Thrugelmir

Desktop valuation is imprecise science. There's only two prices that really matter. What you pay to purchase and how much you sell the property for. 

lizhd

SimonBck said:

How did you find out the valuation figure? Our mortgage offer is through HSBC. 

The broker told me that is what the valuation came back as.

omd3x

Hi, can I ask how long after your valuation you got word on the value?

lizhd

omd3x said:

Hi, can I ask how long after your valuation you got word on the value?

I don't know when they did it (it was virtual, they didn't attend the property) but my mortgage application was submitted a week ago and I found out about the valuation today and was told I'll find out about the mortgage offer by next wed.