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Would you worry about this downvaluation?

10 replies

hopefulsquirrel · 18/05/2023 16:10

We are FTBs and I think I’m just looking for some reassurance!

We’ve had an offer accepted a bit under asking. This was the minimum the sellers would accept (we initially went in lower and there was some negotiation) and we’re happy with it.

Just had our mortgage appointment over the phone. The lender has downvalued the house slightly - their valuation is about 98% of the accepted offer price. Think somewhere in the region of £4-7k less.

The lender said we could still apply for the same amount of mortgage with the same deposit, it’s just taken our LTV from 72 to 73% so we can still get the same mortgage rate (as it’s not gone over 75).

We know the sellers won’t drop the price any further. We like the house and still want to buy it. It’s probably not our forever home but we can see ourselves staying there for at least 10 years - it’s a 3-bed with a decent garden and garage, with potential to extend in a nice area. We don’t want to lose it for the sake of a few thousand and we don’t think we’ll be losing sleep over this in a few years when it’s only moved our LTV a tiny bit. But we’re aware that difference in price is now money we’re spending to secure the house which we won’t initially get back as equity.

However I would really appreciate any thoughts or advice you may have for me.

OP posts:
Deathbyfluffy · 18/05/2023 16:11

If you like the house, go for it - it's only a few grand over a very long period of time.
Don't pee off the sellers for the sake of a tiny % of the house's value - it's not worth the fuss IMO.

hopefulsquirrel · 18/05/2023 16:13

Deathbyfluffy · 18/05/2023 16:11

If you like the house, go for it - it's only a few grand over a very long period of time.
Don't pee off the sellers for the sake of a tiny % of the house's value - it's not worth the fuss IMO.

Thanks, this is reassuring! We figure it’s money we’re initially throwing away to secure the house but that we will ultimately get back over time.

Definitely don’t plan to annoy our sellers, we’ve already negotiated to a point both sides are happy with.

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Geneticsbunny · 19/05/2023 08:48

We had exactly the same thing with our first house and just paid the extra few thousand and it worked out fine. We sold a few years later in a much lower market for the same price we bought at.

Secondwindplease · 19/05/2023 09:43

Lenders are a little cautious at the moment, so I wouldn’t be worried. It’s not affecting your ability to borrow and you’ve a long time to make it back.

When I bought my first property I met the surveyor in person. He actually asked me if I wanted him to down value the property a bit so I could get more money off! Of course I said no, but it shows the mortgage companies are using an exact science determine these things.

Secondwindplease · 19/05/2023 09:43
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AlmostGreenFingers · 19/05/2023 09:44

The numbers you’ve given wouldn’t worry me at all. Go for it, get on the ladder!

Charlieiscool · 19/05/2023 09:47

It would be a pity to lose out over this. I’d go ahead. In 10 years when you move on it won’t have mattered at all.

Screwedupworld · 19/05/2023 09:56

Go for it! Over 10 years if you stayed is nothing. I would be going for it if I loved the house.

BitOutOfPractice · 19/05/2023 09:58

I wouldn’t worry about this. I think lenders are being cautious atm

hopefulsquirrel · 19/05/2023 10:22

Thanks so much everyone, wasn’t expecting it to be so unanimous! We are going for it 🙂

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