Basic Mortgage Query

[buckfast]

Hello,

If I wish to buy a house which is on the market for 160k, and say for example the deal is done for 155k, does the lender provide the 90% of 160k or 155k? Or is this determined by the Valuer?

Thanks

 

[sexitoni]

It's based on the 155K agreed purchase price.

Also the valuer, typically, will agree with the accepted offer as being the true value of the property. He definitely won't value it higher.

You should think of it as being a confirmation that you have valued the house fairly rather than a number they calculate themselves

 

[buckfast]

Thanks. The real issue with me is that I would need to put a few thousand into the house and wouldn't have enough left out of my personal savings. I guess i'd need to look at getting a personal loan? Are there any other options?

 

[sexitoni]

Not really - apart from the boring one about just doing what you can afford one step at a time rather than overborrowing

 

[tony79]

What if the work that was done would raise the value of the property ? Would a mortgage lender loan the money based on an 'expected' final value after the work was completed ? or do you have to buy it and then remortgage with the intention of carrying out work ?

 

[Mr DT]

Thanks. The real issue with me is that I would need to put a few thousand into the house and wouldn't have enough left out of my personal savings. I guess i'd need to look at getting a personal loan? Are there any other options?

SAVE for the funds you need?!?!

 

[sexitoni]

They won't lend on the basis of projected future value, no. Doesn't matter what you tell them you intend to do with the extra funds.