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Can someone sense check the following:

You go to buy a £300K house with a £50K deposit, the bank therefore lends you 83% of the house price.

You go to buy a £300K house with a £50K deposit, the survey says the house is only worth £280K, you still want to go ahead.

Does this mean you would have to put £20K up first (to reduce price to £280), leaving just £30K for the deposit meaning the bank has to lend 89%?

If this is how it works then as the banks tighten their criteria two effects will speed HPC.

1) High LTV will need MIG insurance (Like in 1993, ect)

2) Surveyors will always down value houses to ensure banks are more protected.

(or the banks don't sue them for incompetence)

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Why would anybody pay more than what the survey says for a house??

Can someone sense check the following:

You go to buy a £300K house with a £50K deposit, the bank therefore lends you 83% of the house price.

You go to buy a £300K house with a £50K deposit, the survey says the house is only worth £280K, you still want to go ahead.

Does this mean you would have to put £20K up first (to reduce price to £280), leaving just £30K for the deposit meaning the bank has to lend 89%?

If this is how it works then as the banks tighten their criteria two effects will speed HPC.

1) High LTV will need MIG insurance (Like in 1993, ect)

2) Surveyors will always down value houses to ensure banks are more protected.

(or the banks don't sue them for incompetence)

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Why would anybody pay more than what the survey says for a house??

Maybe an estate agent who knows the area better than the surveyor is buying. He knows the surveyor is being over cautious, and besides, the house he is buying is next door to his elderly mother who needs quite a lot of care (which his non-working wife can provide).

Just one example!

FF

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Guest consa

Just done a pre-survey for a friend of mine who is buying :blink:

Anyway I met the EA and freind at the property checked property, roof purlins insufficiently supported, suspicious cracks suggesting drain failure, 1 failed lintel, no gutters :blink: price already reduced from 225K to 215K, agent reckons 205K would be acceptable, Friend doesn't want to lose property as his is sold STC, told him to offer 205K to secure while awaiting prices to rectify faults etc, then re-negotiate, told EA of the faults to prepare him hehe (he had to agree as I am a Civil Engineer)!! I will get the prices for remedial works ie:5K new revised offer will be 199K, not bad to bring those levels down. good evenings work done, not happy about a sale though. :angry:

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Check this out, third reply:

http://boards.thisismoney.co.uk/tim/thread...3&message=82599

Borrowed from another HPCer.

This is my point it is the surveyers who will cause the HPC.

How can you buy this house if the vender thinks 425 the surveyor thinks 345?

The bank will only lend against what the surveyer values at so even if this is the perfect house and you have 80K for deposit you would need 100% mortgage?

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Can someone sense check the following:

You go to buy a £300K house with a £50K deposit, the bank therefore lends you 83% of the house price.

You go to buy a £300K house with a £50K deposit, the survey says the house is only worth £280K, you still want to go ahead.

Does this mean you would have to put £20K up first (to reduce price to £280), leaving just £30K for the deposit meaning the bank has to lend 89%?

If this is how it works then as the banks tighten their criteria two effects will speed HPC.

1) High LTV will need MIG insurance (Like in 1993, ect)

2) Surveyors will always down value houses to ensure banks are more protected.

(or the banks don't sue them for incompetence)

This is pretty much how it works, the banks couldn't giving a flying fart what the EA thinks he can sell the property for after all its the sellers who pays his way, what the banks wants to know is does his man thinks the houses is worth that kind of money, see it a bit like the man from Delmonte, if he say no the deals off.

Edited by Dicky

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  • 336 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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