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  • FIRST POST
    • u0362565
    • By u0362565 10th Feb 18, 10:01 AM
    • 63Posts
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    u0362565
    House Valuations during remortgage application
    • #1
    • 10th Feb 18, 10:01 AM
    House Valuations during remortgage application 10th Feb 18 at 10:01 AM
    Hi all,

    We're about to remortgage as our 2 year deal is ending. On many lender websites you can roughly see what your new interest rate will be through their calculators. With these you have to estimate your property's value. This is all a bit hypothetical until the valuer comes out to actually do a valuation as part of the mortgage process.

    If I undervalue the property on the application and then the valuer comes and its actually worth more, will the valuer be honest and independent in their valuation? (Are valuers independent of the lenders always?) In my mind it would benefit the lender to agree with my undervaluation because they could charge us a bigger interest rate. Whereas if it was worth a few £10k's more our LTV goes down and we get a lower rate potentially. What I hope is that valuations are carried out by independent companies who aren't in cahoots with the lenders. Is it worth getting an independent valuation pre mortgage application in this case.
Page 1
    • amnblog
    • By amnblog 10th Feb 18, 10:51 AM
    • 10,285 Posts
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    amnblog
    • #2
    • 10th Feb 18, 10:51 AM
    • #2
    • 10th Feb 18, 10:51 AM
    Valuer are generally conservative not generous on remortgage valuations.

    If you appear based on your calculations to be tight on loan to value expect to be disappointed.

    Valuations from estate agents are frequently too high and are a waste of time.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
    • Glover1862
    • By Glover1862 10th Feb 18, 11:24 AM
    • 254 Posts
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    Glover1862
    • #3
    • 10th Feb 18, 11:24 AM
    • #3
    • 10th Feb 18, 11:24 AM
    Just value it a few thousand more and expect to be down valued, Ive remortgage quite a few properties and never had a surveyor say it is worth more, they'll either agree with your estimate or knock it down.

    Why would a lender agree to a 'more independent surveyor' when they have their preferred which is often free, its their money they are risking.
    Last edited by Glover1862; 10-02-2018 at 11:27 AM.
    • Thrugelmir
    • By Thrugelmir 10th Feb 18, 11:45 AM
    • 57,492 Posts
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    Thrugelmir
    • #4
    • 10th Feb 18, 11:45 AM
    • #4
    • 10th Feb 18, 11:45 AM
    In my mind it would benefit the lender to agree with my undervaluation because they could charge us a bigger interest rate.
    Originally posted by u0362565
    Then you'd take your business elsewhere. Mortgages are a competetive market. Valuers are professionals governed by industry rules. No one is going to destroy their reputation over a few hundred £.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • kingstreet
    • By kingstreet 10th Feb 18, 3:19 PM
    • 32,905 Posts
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    kingstreet
    • #5
    • 10th Feb 18, 3:19 PM
    • #5
    • 10th Feb 18, 3:19 PM
    Look at the recent (last four months) sold prices of similar property in the vicinity (under 0.5 miles) as these are the comparables used by a surveyor valuing for a lender.
    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.
    • u0362565
    • By u0362565 10th Feb 18, 3:59 PM
    • 63 Posts
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    u0362565
    • #6
    • 10th Feb 18, 3:59 PM
    • #6
    • 10th Feb 18, 3:59 PM
    Ok I think then maybe putting in a slightly higher estimate when applying means that they either agree with you or knock you down but as long as we're prepared for that happening thats fine. We found when we took out our current mortgage we paid £20k more than a prior independent valuation had estimated but the lender was happy to base our mortgage on what we paid.
    • jkl123
    • By jkl123 10th Feb 18, 8:28 PM
    • 48 Posts
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    jkl123
    • #7
    • 10th Feb 18, 8:28 PM
    • #7
    • 10th Feb 18, 8:28 PM
    Hi all, sorry to jump on this post but it is related. when we bought our house 2 years ago we bought it for £128000. we are looking to remortgage, and I looked into value on a few websites online, which said £135,000 (this was what it was advertised at when we bought it also) but we had a estate agent value it in the week and valued it at £150,000 but £145,000 for valuation purpose. What would be the best thing for me to put when applying for mortgage? We could still afford it if it was at 135,000 but obv would be better for us if it was worth more. But if we put 145,000 and they disagree will this mess up our application? sorry for long winded post.
    • u0362565
    • By u0362565 11th Feb 18, 9:28 AM
    • 63 Posts
    • 5 Thanks
    u0362565
    • #8
    • 11th Feb 18, 9:28 AM
    • #8
    • 11th Feb 18, 9:28 AM
    I would go with the valuation figure then. Even if the lender thinks less you have done what you can to estimate i.e. having your own valuation done. I don't think it would mess up the application, they would presumably just adjust the figures and lend to you at a slightly higher rate of interest?
    • jkl123
    • By jkl123 11th Feb 18, 10:30 AM
    • 48 Posts
    • 32 Thanks
    jkl123
    • #9
    • 11th Feb 18, 10:30 AM
    • #9
    • 11th Feb 18, 10:30 AM
    That's great thankyou, I thought that's what would happen but wasn't sure thankyou
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