Valuation come back lower HSBC

Vestraun

chillicheesedog said:

Oh no! Hope you get a new price agreed with the seller. Seemingly lots of downvaluation going on at the moment 😕

I wonder why? 

Process90

chillicheesedog said:

Oh no! Hope you get a new price agreed with the seller. Seemingly lots of downvaluation going on at the moment 😕

Nightmare!! We’re hoping they meet us half way but we don’t want to go too far over the valuation so we have a limit. 

jurgen19

chillicheesedog said:

Oh no! Hope you get a new price agreed with the seller. Seemingly lots of downvaluation going on at the moment 😕

I believe so. I wonder why though?

jurgen19

Process90 said:

I can also join this club.

Our valuation has come up £30k short of asking price from HSBC today and HSBC want us to amend LTV accordingly. I nearly fell over when my broker told me. Personally, I think this drop reflects a 10% drop in house prices.

Waiting for EA to get back to us as we've asked if the vendor is willing to meet in the middle. Probably, not... but we're certainly not going to pay what we originally offered now.

Good luck  I hope you sort everything out. It’s very frustrating to get to this point and then to be hit with this is a real kick in the teeth!

[Deleted User]

HSBC are one of the only lenders currently offering 10% deposits. Their strategy may be to instruct the pickiest valuers so they protect themselves in case property values fall. 

They have always been one of the pickiest lenders out there anyway. Even though Ive banked with HSBC for almost 40 years I avoid their products

blue_max_3

The valuation is what they are prepared to lend on. It is taking a longer outlook and factoring in a potential drop in value. 
That's the downside of having a 90% loan I guess. A seller may take the view that another buyer, who has a larger deposit and different lender, may well value it differently.

jurgen19

blue_max_3 said:

The valuation is what they are prepared to lend on. It is taking a longer outlook and factoring in a potential drop in value. 
That's the downside of having a 90% loan I guess. A seller may take the view that another buyer, who has a larger deposit and different lender, may well value it differently.

Perhaps, but the mortgage advisor from HSBC and the estate agent were both in agreement that it was going to be very difficult for the vendor to now achieve his asking price. But I suppose they are just people’s opinions and the vendor may well have different ideas. I’m just going to have to wait and see I guess.

jurgen19

Densol said:

HSBC are one of the only lenders currently offering 10% deposits. Their strategy may be to instruct the pickiest valuers so they protect themselves in case property values fall. 

They have always been one of the pickiest lenders out there anyway. Even though Ive banked with HSBC for almost 40 years I avoid their products

Yeah we struggled to find a lender offering 10% and didn’t really have much choice but to go with HSBC. Going off what the mortgage adviser told me yesterday that majority of lenders would use the same companies for valuations for each local area,so the outcome would most likely be the same regardless of who the lender is. (How true that is I really don’t know)

Process90

blue_max_3 said:

The valuation is what they are prepared to lend on. It is taking a longer outlook and factoring in a potential drop in value. 
That's the downside of having a 90% loan I guess. A seller may take the view that another buyer, who has a larger deposit and different lender, may well value it differently.

We have applied for an 80% LTV so the massive down valuation doesn’t affect us as much as it would an 90% LTV. 

jurgen19

Just had the phone call...... and the vendor has accepted the new valuation and we are good to go!!!! Im so happy!!!