House Valuation

Wales2020

Apologies if this is a stupid question but as a FTB i don't have a clue! 

Does the mortgage valuation have to be the agreed price? So for example if we agree £185,000 for a property but are only lending £160,000 from mortgage provider do they still expect the valuation to come in at £185?? Or is there leeway based on the actual borrowing amount?

I am asking as i am terrifed of house being undervalued and us getting declined.

thanks

mortgagetakingages

Depends on the ltv rate you are looking for. 

shakAFC

I often wonder this. Is it the agreed price or what they are lending you.

Wales2020

Looking at 90% £185,000 agreed price £166,500 mortgage amount ... god its so stressful

mortgagetakingages

So you want to borrow 90% of £185,000? Why is the seller giving you such a discount? That sounds like a deposit contribution. 

Wales2020

mortgagetakingages said:

So you want to borrow 90% of £185,000? Why is the seller giving you such a discount? That sounds like a deposit contribution. 

I’m sorry may not have written it correctly....

the house agreed price £185,000 
Our 10% deposit £18,500
Required mortgage LTV 90%? £166,500 

mortgagetakingages

So if the valuation is less you need to get the home owner to reduce their asking price or make up the shortfall by increasing your deposit, if it is more then you will meet the LTV requirements and everyone happy. 

shakAFC

mortgagetakingages said:

So if the valuation is less you need to get the home owner to reduce their asking price or make up the shortfall by increasing your deposit, if it is more then you will meet the LTV requirements and everyone happy. 

Hi, So the valuation needs to match or better the agreed price?

Lipstick99

shakAFC said:

mortgagetakingages said:

So if the valuation is less you need to get the home owner to reduce their asking price or make up the shortfall by increasing your deposit, if it is more then you will meet the LTV requirements and everyone happy. 

Hi, So the valuation needs to match or better the agreed price?

Yes. One lender undervalued by £10k. So submitted to new lender. Valuation still a little under but offer received.
Valuations are on full property price, not your loan amount. 

mortgagetakingages

shakAFC said:

mortgagetakingages said:

So if the valuation is less you need to get the home owner to reduce their asking price or make up the shortfall by increasing your deposit, if it is more then you will meet the LTV requirements and everyone happy. 

Hi, So the valuation needs to match or better the agreed price?

Exactly