Offering over the Home Report valuation: what it means for your deposit
In much of Scotland, homes regularly sell for more than their Home Report valuation. That can be fine, but it changes how much cash you need, because lenders usually base your mortgage on the valuation, not the price you pay.
Most lenders lend a percentage of the lower of the purchase price or the valuation. If you offer more than the Home Report valuation, the difference usually has to come from your own savings, on top of your deposit. Work out your maximum offer from the cash you have, not from the asking price.
How lenders treat the valuation
When you apply for a mortgage, the lender values the property, often using the Home Report's Mortgage Valuation Report or its own valuer. The loan is based on that valuation. If you pay more, the lender will not usually increase the loan to cover the extra.
Worked example
A flat has a Home Report valuation of £200,000. You plan to borrow 90%.
| Offer at valuation | Offer £15,000 over | |
|---|---|---|
| Purchase price | £200,000 | £215,000 |
| Mortgage (90% of £200,000) | £180,000 | £180,000 |
| Cash needed for the price | £20,000 | £35,000 |
| LBTT (standard rates) | £1,100 | £1,400 |
| Cash needed before fees | £21,100 | £36,400 |
Illustrative only. First-time buyers pay less LBTT. Lenders' criteria vary.
Offering £15,000 more increases the cash you need by £15,300, because the extra comes from your own money and LBTT rises too.
Try your own numbers with the over-valuation calculator.
Looking at a specific property? Get a free report on that home, written around what you need.
Why homes sell over valuation
Where demand is high, several buyers may compete at a closing date and push the price above the valuation. A valuation reflects recent evidence, while a closing date reflects what buyers are willing to pay on the day. Neither is "wrong", but the gap is your cash.
Setting your maximum offer
- Start with the cash you actually have available.
- Take off LBTT, legal fees, registration dues and moving costs.
- Take off a buffer for repairs flagged in the Home Report.
- What's left, on top of your deposit, is the most you can go over the valuation.
Then ask whether the property is worth that much to you. Check recent sale prices nearby, the condition ratings and any costs the Home Report doesn't cover (see what the Home Report doesn't tell you).
Other things to know
- Some lenders may revalue the property themselves, and their figure can differ from the Home Report.
- Speak to a mortgage adviser before the closing date so you know exactly how much you can borrow.
- A lower offer with fewer conditions can sometimes beat a higher one with more.
Frequently asked questions
Will my lender lend on the price I pay?
Usually not if it is above the valuation. Most lenders lend a percentage of the lower of the price and the valuation.
Can I add the amount over valuation to my mortgage?
Generally no. The amount over the valuation normally has to come from your own cash.
How far over the Home Report do houses go in Scotland?
It varies widely by area and demand. Check recent sale prices for similar homes nearby rather than relying on a general rule.
Sources
- Scottish Government: Scottish Budget 2026 to 2027
- mygov.scot: Home Reports
- Scottish Government: Home Report
- Revenue Scotland: LBTT residential property
This guide is general information, not legal, tax or financial advice.