HSBC valuation lower!

Thrugelmir

FTB_1991 said:

Same with me today - £15k under. The whole thing feels ridiculous, it’s like they don’t actually want to give out 90% LTVs so are making buyers meet somewhere in the middle. Very upset that everything may fall through now. 

It's the lenders money.  They require adequate security for the debt. Which is different to what you are prepared to pay for the property when using their money. 

iwb100

Valuations are in essence a computer algorithm looking at the historical data in the area...if you have a house that is different to the rest on the street and general area...you will be out of luck if you don’t have a big enough deposit. We once tried to buy a detached house in its own plot but in an area surrounded by terraced streets. Not enough history to properly value it unless a lender would send someone out..,

FTB_1991

lmftb_2020 said:

We applied for an 80% ltv. When the valuation came back £35k less we refused to increase to a higher ltv % when putting a large deposit down. The vendor refused to budge and the sale fell through! We’ve since had an offer accepted on another property with the valuation booked for Thursday, praying it doesn’t happen again!! 😰

Good luck

FTB_1991

Hi guys, 
those who did have a down-valuation. For the amended mortgage application, how long did it take to receive a mortgage offer? We had the amendment on Friday and I thought the valuation would be automatic given it was done but nothing back yet. 

Secondly, we are putting in £10k cash to make up the difference between the 10% deposit for the purposes of the bank and the higher price agreed with the seller (we compromised on price both ends). Re the difference, I am taking £6k as a gift from my husband (I am a sole purchaser). Does the £6k count as a gifted deposit or not? 

The 10% deposit as per the banks valuation of the properly is wholly my own savings so it’s the excess to make it up to the agreed price that I am wondering about. 

Process90

We amended our application on the 24/08, submitting new property details. The valuation on it is booked in for this Thursday.
I think HSBC's service levels for amendments are up to 10 days.

I'd say the £6k would be a gifted deposit.

tweeto

Process90 said:

We amended our application on the 24/08, submitting new property details. The valuation on it is booked in for this Thursday.
I think HSBC's service levels for amendments are up to 10 days.

I'd say the £6k would be a gifted deposit.

How did you find out the valuation date? Are you with a broker or going directly?......I'm going directly, but the advisor told us that we won't know when it happens. Our application went in on the 20/8, so I may phone in the next few days to see if I can get any info

Process90

tweeto said:

Process90 said:

We amended our application on the 24/08, submitting new property details. The valuation on it is booked in for this Thursday.
I think HSBC's service levels for amendments are up to 10 days.

I'd say the £6k would be a gifted deposit.

How did you find out the valuation date? Are you with a broker or going directly?......I'm going directly, but the advisor told us that we won't know when it happens. Our application went in on the 20/8, so I may phone in the next few days to see if I can get any info

The estate agent told us and can tell you if it's a physical one because the surveyor will ring them and book it in with them.

We're using a broker but we popped into the estate agent to get them to verify our ID for solicitor and they told us when we popped in. 

If your valuation was physical then I'd say it's probably already been done by now - ask the estate agent.

tweeto

Process90 said:

tweeto said:

Process90 said:

We amended our application on the 24/08, submitting new property details. The valuation on it is booked in for this Thursday.
I think HSBC's service levels for amendments are up to 10 days.

I'd say the £6k would be a gifted deposit.

How did you find out the valuation date? Are you with a broker or going directly?......I'm going directly, but the advisor told us that we won't know when it happens. Our application went in on the 20/8, so I may phone in the next few days to see if I can get any info

The estate agent told us and can tell you if it's a physical one because the surveyor will ring them and book it in with them.

We're using a broker but we popped into the estate agent to get them to verify our ID for solicitor and they told us when we popped in. 

If your valuation was physical then I'd say it's probably already been done by now - ask the estate agent.

Our advisor didn't tell us if it was physical or desktop, i'd like to know the result though as it's one less thing to worry about!.....I don't really want to contact the EA as they may start asking questions about our progress and they may get spooked if they find out we haven't got a mortgage offer yet. I think the reason they haven't chased is because everything else has been moving along nicely (solicitor questions, mortgage valuation, searches, our own survey etc.), so really don't want to rock the boat!

I may phone HSBC on Thurs/Fri just to get an update on things. But I guess with the valuation, no news is good news (as it may mean it hasn't been under-valued)!

Process90

Most EAs will know that people haven't got the mortgage offer so I wouldn't worry about that. I don't think there would be any harm in asking the EA if anyone has been in contact.

We thought no news was good news with the valuation but it wasn't until we passed underwriting and reached the offer stage that we got told about the property being under-valued. 

tweeto

Process90 said:

Most EAs will know that people haven't got the mortgage offer so I wouldn't worry about that. I don't think there would be any harm in asking the EA if anyone has been in contact.

We thought no news was good news with the valuation but it wasn't until we passed underwriting and reached the offer stage that we got told about the property being under-valued. 

What a waste of time that was! You'd think they would contact you straight away if the house was under-valued, as that's always going to be an issue.