When would lender change an offer?

NewHouse86

NatWest are my lender, I’ve received an email confirming offer accepted subject to valuation. Assuming their valuation is in line with my offered purchase price, does this mean they are offering the value I’ve requested/need? Or when my official offer comes through could it be less than I need? FTB so not experienced with the application process. 

dimbo61

The surveyor will value the property and look at recent sold prices in the area.
He/she will do a report and value the property in the current market.
This might be the same as the sale price or less. 
They tend not to say it's worth £20,000 more 🤔 
Wait and see.
This is why you should have the survey done ASAP before you spend money on other things like searches, legal work etc

NewHouse86

Thanks for your response @dimbo61 Could they make me a lower mortgage based on affordability or is the confirmation of accepted pending valuation an indication that they will offer me what I need? I assume my affordability has been assessed already but I don’t know if they would raise concerns of affordability before an offer. 

Meh123

NewHouse86 said:

Thanks for your response @dimbo61 Could they make me a lower mortgage based on affordability or is the confirmation of accepted pending valuation an indication that they will offer me what I need? I assume my affordability has been assessed already but I don’t know if they would raise concerns of affordability before an offer. 

As a rule affordability is worked out when you do the DIP, if the affordability/criteria doesn’t fit then you don’t get one (so if we’d done a DIP on a £1million property with our income they wouldn’t have accepted it 😂)
UW is where they then triple check the figures/documents, so making sure your income/debts are as confirmed and nothing has been hidden away. Hope that helps a bit.

NewHouse86

Meh123 said:

NewHouse86 said:

Thanks for your response @dimbo61 Could they make me a lower mortgage based on affordability or is the confirmation of accepted pending valuation an indication that they will offer me what I need? I assume my affordability has been assessed already but I don’t know if they would raise concerns of affordability before an offer. 

As a rule affordability is worked out when you do the DIP, if the affordability/criteria doesn’t fit then you don’t get one (so if we’d done a DIP on a £1million property with our income they wouldn’t have accepted it 😂)
UW is where they then triple check the figures/documents, so making sure your income/debts are as confirmed and nothing has been hidden away. Hope that helps a bit.

Thank you!!! Trying to make sure I don’t get too stomach churningly excited ahead of time but it is looking positive.

Meh123

NewHouse86 said:

Meh123 said:

NewHouse86 said:

Thanks for your response @dimbo61 Could they make me a lower mortgage based on affordability or is the confirmation of accepted pending valuation an indication that they will offer me what I need? I assume my affordability has been assessed already but I don’t know if they would raise concerns of affordability before an offer. 

As a rule affordability is worked out when you do the DIP, if the affordability/criteria doesn’t fit then you don’t get one (so if we’d done a DIP on a £1million property with our income they wouldn’t have accepted it 😂)
UW is where they then triple check the figures/documents, so making sure your income/debts are as confirmed and nothing has been hidden away. Hope that helps a bit.

Thank you!!! Trying to make sure I don’t get too stomach churningly excited ahead of time but it is looking positive.

It’s hard isn’t it 😅😅 but allow yourself a bit of excitement, things are all moving in the right direction!

[Deleted User]

Offered subject to valuation usually means they have finished all the financial underwriting and assuming the valuation comes back at your offer price then the offer will be sent out.  

Dont change your financial circumstances between now and completion or the lender reserves the right to withdraw the offer or to at least re-underwrite the case. It doesnt happen often though, usually just with big scale redundancies and them doing a search for all pre-completion cases with that employer

NewHouse86

Deleted_User said:

Offered subject to valuation usually means they have finished all the financial underwriting and assuming the valuation comes back at your offer price then the offer will be sent out.  

Dont change your financial circumstances between now and completion or the lender reserves the right to withdraw the offer or to at least re-underwrite the case. It doesnt happen often though, usually just with big scale redundancies and them doing a search for all pre-completion cases with that employer

Thank you, this really clears it up for me- very helpful. And if anything my financial situation is better as I’ve cleared the last couple of hundred off my credit card (this balance was declared on application) so that’s good!