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HSBC £4k difference on valuation, desktop vs application

IAMIAM
IAMIAM Posts: 1,424 Forumite
Fifth Anniversary 500 Posts Name Dropper
in Mortgages & endowments
Switching from FD to HSBC and they have completed a desktop valuation of £306k. I put £310k on application, it will mean it tips me over the 75% LTV by a couple of grand, will they let it go and stick with 75% application rate or come back and say sorry move to 80% LTV rate? (Its a remortgage from FD with additional borrowing in the application). I don't want to drag out a surveyor for nothing and then they come back with a much lower valuation potentially....Passed everything else, no debts.

Comments

  • K_S
    K_S Posts: 6,908 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 19 May 2021 at 4:16PM
    @IAMIAM For 75% LTV products, the loan amount needs to be 75.00% of the valuation at most, so £229,500 in your case. The fee (if any) can be added on top without upsetting the LTV band.

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • IAMIAM
    IAMIAM Posts: 1,424 Forumite
    Fifth Anniversary 500 Posts Name Dropper
    edited 19 May 2021 at 4:21PM
    How does it work in terms of execution only. All the details are the same on the dashboard, but I've noticed valuation 4k less, but same direct debit and product etc amounts. Will the underwriter come back and send a message to me directly to pick another product or reduce the additional borrowing? Can I challenge the 4k?
  • K_S
    K_S Posts: 6,908 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 19 May 2021 at 5:08PM
    @iamiam Apologies, I have not a clue. If it were a broker app, generally speaking (I can't recall an HSBC down-val) they'd ask me what I want to do now that it's been down-valued. If I had to guess, I'd say they'll ask you to select a different product. 

    If it is possible to challenge the desktop val, I imagine it's on these lines https://intermediary.tsb.co.uk/valuations/residential-property-valuation-appeal/ 

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Reduce the additional borrowing.
  • IAMIAM
    IAMIAM Posts: 1,424 Forumite
    Fifth Anniversary 500 Posts Name Dropper
    What a shame!
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