Purchase Price vs Valuation

F

FTBuyer

Guest
Hi folks,

I currently have a bid on a house (First Time Buyer). If the vendor agrees to the offer I feel like I have gotten good value (my current bid is 66% of guide price - and yes I know a lot of guide prices out there today are unrealistic).
Question relates to finding the 10% deposit required by the Banks. I would be struggling to get this amount but could maybe manage it by asking family (would rather not do this however). One way around this I had thought about would be if I could argue to the Bank that the house I am purchasing for E200k is really worth E250k (and this could be confirmed by Bank panel valuer) and the E50k difference could represent my equity? I realise that this may be very wishfull thinking 'in the current environment'!
Current bid is E200k. Would require a further E30-40k to make the house habitable. As such would be applying for a mortgage of E230-240k less the c. E12k in savings I have. Would be confident that a Bank panel valuer would value the house 'as is' at E250k and maybe E300k once finished.
Would really like to buy the house without having to ask family members to help out. Any advise most appreciated.
 
Sorry but all bank lend based on the lower of the valuation and the contract price these days.

Besides, most look to see that you have saved up the bulk of the deposit yourself.
 
Thanks for your response Dave, thought as much but thanks for clarifying
 
you're going to struggle to get mortgage if you only have 12 k savings-- you've not even close to 10% deposit and don't forget you are gonig to need approx 2000 to cover fees, survey etc. so you really only have 5% deposit
 
I'd very much doubt you'll get any mortgage with 12K in savings to be honest. You'd need to double it & must be your own savings.

I'd recommend applying for a mortgage before bidding on any more houses to see what mortgage amount (if any) you'll have to play with.
 
I transferred my deposit from an investment account to a savings account and i gave ulster bank a statment for the 12 months of the savings account. They queried where the money had originated so UB will definitly query any deposits

theres no way they banks valuer will put a higher value on the house, they need the contracts from the bank . Youd be better off just saving for another year
 
FTBuyer can u let us know if you get the mortgage please? And which bank offered it?
 
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