Everything You Need To Know About Down Valuations

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A down valuation is where a mortgage lender estimates that a property is worth less than the buyer has offered for it and is not happy to take a risk on the loan. Before you panic, there are things you can do if the property you want to buy, or sell has been down valued.

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Get A Second Opinion

A surveyor will go to the property to get the valuation survey completed. They might have one figure in mind but if you disagree with this then you are entitled to get a second opinion. Surveyors such as https://www.samconveyancing.co.uk/Homebuyers-Survey will be able to provide you with a home buyers survey independently which may give you the ammunition you need.

Appeal

If your second opinion agrees with the valuation your estate agent suggested and the price you want to buy or sell at then you have grounds for appeal. This may go in your favour, but a lot of mortgage lenders can stick to their guns so be mindful of that.

Renegotiate The Price

This will work especially well if you are the borrower as it means that you may be able to pay less for your home. Ask the lender to explain why the property has been down valued. If there are good reasons for this, you could discuss offering less money for the property you want to buy with your estate agent. Your new offer could be turned down, but you could find yourself with a much cheaper house, so it is worth asking the question.

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Go To A Different Lender

A different lender will want to do their own valuation so it could be worth shopping around. Look at a company such as Compare Our Best Mortgage Rates | MoneySuperMarket for the best rates. You may end up paying less for your new mortgage than your old one if rates have become more favourable.

Raise A Bigger Deposit Yourself

It may be that the mortgage lender will now offer you less money. If this isn’t too much it could be worth your while to scrape the extra cash together yourself if you are able to. Doing this will mean that you have to borrow less, and your monthly mortgage payments will be slightly less, so it is worth considering if you are able to.

There is often a plan B, so don’t panic.

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