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  • FIRST POST
    • catoutthebag
    • By catoutthebag 2nd Mar 17, 9:20 AM
    • 2,114Posts
    • 477Thanks
    catoutthebag
    Incorrect valuation to remortgage
    • #1
    • 2nd Mar 17, 9:20 AM
    Incorrect valuation to remortgage 2nd Mar 17 at 9:20 AM
    My 2 yr fixed is coming to an end in April with nationwide. I bought my flat at 88.5k on 90% LTV. I have been paying 396 at 3.3% something
    They are telling me it's only worth 94.5 based on prices index. This I think they said is 80% LTV and on 2yr fixed with 999 fee 1.64% is 334. 250 cash back.

    I have not seen properties sell this low here. They are going for 105-110k based on zoopla, right move etc

    Nationwide won't change that value. What do I do? Do all lenders use this inaccurate method to disadvantage the borrower?
Page 1
    • davidmcn
    • By davidmcn 2nd Mar 17, 9:24 AM
    • 5,139 Posts
    • 4,777 Thanks
    davidmcn
    • #2
    • 2nd Mar 17, 9:24 AM
    • #2
    • 2nd Mar 17, 9:24 AM
    What do I do?
    Originally posted by catoutthebag
    Pay for a valuation, if they have that option?
    Do all lenders use this inaccurate method to disadvantage the borrower?
    The fact it's a broad-brush indexation figure isn't going to "disadvantage" borrowers on average, is it? i.e. your property might be worth less than the 94.5k they're guessing it is.

    Anyway, no, many lenders will use more specific valuation methods, up to and including having a surveyor wander round the house poking at things.
    • catoutthebag
    • By catoutthebag 2nd Mar 17, 10:05 AM
    • 2,114 Posts
    • 477 Thanks
    catoutthebag
    • #3
    • 2nd Mar 17, 10:05 AM
    • #3
    • 2nd Mar 17, 10:05 AM
    Thanks

    I'm.confused as to what I put in the 'amount to borrow' in comparison sites based on the 94.5 k property value?
    • Keezing
    • By Keezing 2nd Mar 17, 10:59 AM
    • 207 Posts
    • 154 Thanks
    Keezing
    • #4
    • 2nd Mar 17, 10:59 AM
    • #4
    • 2nd Mar 17, 10:59 AM
    I have not seen properties sell this low here. They are going for 105-110k based on zoopla, right move etc
    Originally posted by catoutthebag
    Nationwide have their own general house price index which is very well regarded.

    You can actually test it here: http://www.nationwide.co.uk/about/house-price-index/house-price-calculator

    If you don't like their valuation you can pay for a formal inspection. This comes with risks as if they value it at lower than the index the new lower valuation will be used.
    Last edited by Keezing; 02-03-2017 at 11:02 AM.
    • Keezing
    • By Keezing 2nd Mar 17, 11:03 AM
    • 207 Posts
    • 154 Thanks
    Keezing
    • #5
    • 2nd Mar 17, 11:03 AM
    • #5
    • 2nd Mar 17, 11:03 AM
    Thanks

    I'm.confused as to what I put in the 'amount to borrow' in comparison sites based on the 94.5 k property value?
    Originally posted by catoutthebag
    The amount to borrow is how much you have left to clear your current mortgage.

    So if you value the property 100k and you have 80k left to pay, you will borrow 80k at 80% LTV.
    • catoutthebag
    • By catoutthebag 2nd Mar 17, 2:38 PM
    • 2,114 Posts
    • 477 Thanks
    catoutthebag
    • #6
    • 2nd Mar 17, 2:38 PM
    • #6
    • 2nd Mar 17, 2:38 PM
    The amount to borrow is how much you have left to clear your current mortgage.

    So if you value the property 100k and you have 80k left to pay, you will borrow 80k at 80% LTV.
    Originally posted by Keezing
    What if it's not a round figure like 80%, like 78%, 83% etc, will they still use a specific rate?
    • catoutthebag
    • By catoutthebag 2nd Mar 17, 2:42 PM
    • 2,114 Posts
    • 477 Thanks
    catoutthebag
    • #7
    • 2nd Mar 17, 2:42 PM
    • #7
    • 2nd Mar 17, 2:42 PM
    Nationwide have their own general house price index which is very well regarded.

    You can actually test it here: http://www.nationwide.co.uk/about/house-price-index/house-price-calculator

    If you don't like their valuation you can pay for a formal inspection. This comes with risks as if they value it at lower than the index the new lower valuation will be used.
    Originally posted by Keezing
    How will they know I've done an independent valuation and how much does it cost?

    Regardless how well regarded it is, its inaccurate when properties in the last 12-18 months have not sold that low and when I've done interior work to add value which they don't count as it's not structural work which I can't even do as it's a flat, it really is pathetic of them
    • Keezing
    • By Keezing 2nd Mar 17, 5:25 PM
    • 207 Posts
    • 154 Thanks
    Keezing
    • #8
    • 2nd Mar 17, 5:25 PM
    • #8
    • 2nd Mar 17, 5:25 PM
    What if it's not a round figure like 80%, like 78%, 83% etc, will they still use a specific rate?
    Originally posted by catoutthebag
    Generally mortgage bands are in 5% increments.

    If your LTV is coming in at 78%, you will get the 80% LTV rates because you don't yet qualify for the 75% LTV rates.
    • Keezing
    • By Keezing 2nd Mar 17, 5:26 PM
    • 207 Posts
    • 154 Thanks
    Keezing
    • #9
    • 2nd Mar 17, 5:26 PM
    • #9
    • 2nd Mar 17, 5:26 PM
    How will they know I've done an independent valuation and how much does it cost?

    Regardless how well regarded it is, its inaccurate when properties in the last 12-18 months have not sold that low and when I've done interior work to add value which they don't count as it's not structural work which I can't even do as it's a flat, it really is pathetic of them
    Originally posted by catoutthebag
    You pay Nationwide to arrange the valuation. It's normally around 300, but they will confirm if you call and request it.

    Good luck!
    • kingstreet
    • By kingstreet 15th Mar 17, 9:33 AM
    • 31,304 Posts
    • 16,715 Thanks
    kingstreet
    FAO Muhandis
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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