Has your property been down valued? In this stressful circumstance it can feel like there is nowhere left to turn, but there are options available and actions you can take following a down valuation.
Property down valued? Your adviser can help
It can be quite stressful when a property down valuation happens, but it’s important not to panic. Consult with your mortgage adviser, they will be able to guide you through this difficult process.
The first thing your mortgage adviser will do is look into renegotiating your purchase price with the estate agents that are selling the property. They will try to get the purchase price to match the mortgage valuation filled out by the lender.
Make the case to the lender
If this is not possible and the vendor will not accept a lower offer, your adviser will then look at other prices in the area. If similar property prices match the selling price of the property you would like to purchase, there may be a case to make with the lender. Your mortgage adviser will do this for you to try to get the lender to change the valuation. This option is often rejected, but it is worth a try if there’s a strong case to put forward to the lender.
Adjusting your deposit
If the lender rejects changing the valuation, your remaining option is to put more deposit into the property to change your mortgage product. This will impact the type of mortgage you will be taking out. If this is unavailable to you, you may need to withdraw from the property purchase and continue your property search.
If you are struggling with property down valuation or any other mortgage needs, please do get in touch with one of our advisers.