mortgage lending amount Q ?

Gavf123

Newbie alert :rolleyes:

Im looking into mortgages and its all new.
A friend said that a mortgage company will only give you up to what the property is worth in the survey report.
So if you buy the house for £110k but after a survey the property price is only £100k then they will only give you up to £90k if its a 90% mortgage.

Is this correct or has there been wires crossed ?

dmg24

Hi Gavf123,

Yes, that is correct! x

savemoney

Yes they will only lend up to what the survey says. Usually a surveyor will base his/her opinions on the state of the property and similar properties in that area at a given time

jedimonkey

Does the lender generally appoint a surveyor to carry out your valuation survey for a mortgage - or can you arrange your own surveyor?

Debt_Free_Chick

jedimonkey wrote: »

Does the lender generally appoint a surveyor to carry out your valuation survey for a mortgage - or can you arrange your own surveyor?

The lender appoints its own surveyor to value the property for mortgage purposes. This is of no benefit to you (other than it's necessary for you to get the mortgage you want).

If you want a survey on a property so you know about it's condition, then you need to appoint your own surveyor. Or, most lender's will offer you the chance to use their mortgage surveyor to carry out a "Homebuyer's Report". In some cases, their surveyor will carry out a Structural Survey, if you want it.

Check the options on the mortgage application form - or simply appoint your own surveyor.

jedimonkey

Yeah thanks - i was thinking of getting a survey done as we have had quite a bit of work done recently and was wondering what the house was worth.

I thought this could then be used with my up coming re-mort application to avoid being charged for a second one.

Is the mortgage appointed survey just a drive-by or a 'proper' coming into the house survey etc?

homer_j_3

Jedi

May be best to start fresh posts if you have a question as some people may not read an exisiting post if they have already read it before you contributed.

If you want to see what your house is worth then the easiest way and cheapest way is to get some valuations from local estate agents and take an average of these figures. This is a market appraisal and you will have to consider that some agents will be more realistic than others and not to fall into the "that agent said it was worth more so it must be worth that" trap as often they will ask you to reduce in 6-8 weeks time when nobody has viewed it.

If you are looking to get a survey done on a remortgage then that is fine but the information the surveyor will use is the local estate agents knowledge combined with sold prices and then adjust for the "finish" on your home. If it looks well maintained and no problems then you will get a bit more than those that look to have had little maintenance on it. A surveyor will also be a bit more relaxed about values on remortgages providing its not massively overvalued - it seems to be the selling/buying figures that they are more cautious about in todays market.

Gavf123

thanks for the replys. So getting back to my Q..
In the housing market do houses generally go on sale with a offers over price close to the real value ? (im in scotland so offers over system here)

Im scared of wasting a lot of money on surveys just to find out what the true value is so I don't offer more than I have as a deposit.
As from what I can understand it means if the house is valued at 100k but I buy it for 120k I need to have the 20k in my own money as the mortgage company wouldn't give me anymore than the survey report figure ?

Gavf123

im really confussed as by looking back at one of my previous posts something different was explained here http://forums.moneysavingexpert.com/showthread.html?t=693593

dmg24

You asked a different question before.

Gavf123 wrote: »

As from what I can understand it means if the house is valued at 100k but I buy it for 120k I need to have the 20k in my own money as the mortgage company wouldn't give me anymore than the survey report figure ?

That is correct.

Gavf123

ok. From prev post I understood if they can give me 120k and I have 10k deposit I can buy something at 130k and didn't know that they might not give the 120k afterall if its not valued at that in the survey.