HSBC Mortgage Approved But Property Down Valued

codingtutor

Hi all

This is my first post here and sorry if I miss out on some key information. I'd just really appreciate some thoughts.

I've had a mortgage approved with HSBC but their surveyors have downvalued the property by 15,000. Not much data to go by nearby and the seller just won't budge. 

My plan is to find another mortgage via the estate agent's broker in the hope that another surveyor will give a different opinion.   And if not, at least the seller can re-consider and either go by the valuation or meet me halfway. 

I know there are loads of posts about down valuing but it would be interested to hear some experiences from the past few months? 

Property listed price: "offers over 240,000". Offer price: 230,000. Surveyors market valuation: 215,000. 

[Deleted User]

Personally i haven't had a case downvalue on purchase price since summer last year. Had a few buy to lets downvalue on rental estimate but nothing on purchase price.
Im based around Cambridgeshire/Norfolk/Suffolk and market has been quite strong

user1977

If there's not much data to go on, why are you convinced it's worth £230k?

Thrugelmir

Extend the area to obtain some comparisons. 

K_S

@codingtutor In the last few months I have had 3 significant down-vals for which the client insisted on trying again with another lender. 2 of those resulted in the new lender valuing it at the agreed purchase price, the third came back at an ever lower valuation than before. All mainstream lenders.

Unfortunately there's no exact science to it and two different lender valuations might end up being conducted by the exact same surveyor in the local area.

Fortunately there are plenty of free-val products being offered by mainstream lenders so this could be an option to consider.

codingtutor

user1977 said:

If there's not much data to go on, why are you convinced it's worth £230k?

I mean within 3 miles there are no other houses similar to this one on sale right now or sold in the last 6 months (detached, cul-de-sac, en suite, good catchment) but there are many others on the market for around 220,000 which fall out of the catchment, are semi-detached and main road. 

Also in October 2020 on a nearby street, a house built by the same developer (same size and layout) sold for 210,000 and I figured prices are higher now compared to October 2020. 

I would totally prefer to purchase it for 215, but I am desperate for a house right now and so the extra 15,000 on a mortgage is worth it to me compared to the cost and inconvenience of not moving into a house as soon as possible. 

codingtutor

K_S said:

@codingtutor In the last few months I have had 3 significant down-vals for which the client insisted on trying again with another lender. 2 of those resulted in the new lender valuing it at the agreed purchase price, the third came back at an ever lower valuation than before. All mainstream lenders.

Unfortunately there's no exact science to it and two different lender valuations might end up being conducted by the exact same surveyor in the local area.

Fortunately there are plenty of free-val products being offered by mainstream lenders so this could be an option to consider.

Thank you so much - I'm hoping the Mortgage Broker from EA finds another deal with fee valuation that works for us. 

I'm now just worried that this would mean a third mortgage application on my credit report:

• First mortgage application: Sale Fell through
• Second mortgage application: Property downvalued
• Third mortgage application: TBC

Thanks for your advice.

K_S

codingtutor said:

K_S said:

@codingtutor In the last few months I have had 3 significant down-vals for which the client insisted on trying again with another lender. 2 of those resulted in the new lender valuing it at the agreed purchase price, the third came back at an ever lower valuation than before. All mainstream lenders.

Unfortunately there's no exact science to it and two different lender valuations might end up being conducted by the exact same surveyor in the local area.

Fortunately there are plenty of free-val products being offered by mainstream lenders so this could be an option to consider.

Thank you so much - I'm hoping the Mortgage Broker from EA finds another deal with fee valuation that works for us. 

I'm now just worried that this would mean a third mortgage application on my credit report:

• First mortgage application: Sale Fell through
• Second mortgage application: Property downvalued
• Third mortgage application: TBC

Thanks for your advice.

@codingtutor If your next application passes the lender "credit-scoring" at the DIP (Decision In Principle) stage, that is as much assurance as you are going to get about the impact of the hard-footprints from the multiple applications. I can't speak for your case specifically, but from my experience, I've never had a client not able to proceed just because of 2 recent hard-footprints on their report.

IAMIAM

Which valuation company was it? Legal and General or Countrywide? I find Countrywide are the main down valuers....

codingtutor

@IAMIAM It was SDL - I think they are Derby based. I'll try to avoid Countrywide for my next valuation then!  

Wes121708

@codingtutor that's interesting we had SDL who also down valued by 25k!