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Abacus-money Jargon

V

Valuation Report

Lenders require a standard valuation to be undertaken on the property before issuing the mortgage offer. This is to protect the lenders interest, not the borrowers. If the lenders valuation report reveals further reports or work to be undertaken, any further costs will be payable by the borrower, should the borrower choose to proceed. The lender will compare the valuation figure with the agreed buying price, and use whichever is lower when deciding on how much to lend.

Value

The price of a property under normal conditions, i.e. when the buyer is not forced to buy and the seller not forced to sell.

Variable Rate

A mortgage in which the rate of interest charged is altered at the discretion of the lender, typically but not necessarily in relation to changes in the Bank of England base rate.

Vendor

The seller.