Valuation for remortgage - what are they looking for?

KaratePigeon

Morning all.

We moved into our little house 2 years ago and were on a fixed rate mortage which has now expired. After lots of reading and consideration we've decided to go with the HSBC fee-free tracker which which we can only have for an LTV of 90% or more. We very nearly had a good fixed rate deal, but needed 85% LTV and I wasn't confident we had that.

We originally only had a 5% deposit (paid £128k for house) and were quite confident that house prices had risen enough in those 2 years, but now prices have fallen and I'm worried it will turn out that we need to borrow more than 90%. Is this likely?

We've got someone coming round to do a valuation next week (this is free with HSBC and I think they normally do drive-bys, so does it mean anything that they are actually coming in?) My instinct is to tidy up, really make the house look nice etc, but will it make any difference? I know our kitchen really needs replacing, as the tap is broken and the laminate is all coming off the worktops - we are going to replace it this year but won't be in time for the valuation. Should I try and cover up stuff like that or will it not affect the value?

Thanks.

opinions4u

I'd disguise the duff stuff anyway if I were you. It probably won't make any difference, but any positive perception will not make anything more awkward.

Good luck!

manikm

KaratePigeon wrote: »

Morning all.

We moved into our little house 2 years ago and were on a fixed rate mortage which has now expired. After lots of reading and consideration we've decided to go with the HSBC fee-free tracker which which we can only have for an LTV of 90% or more. We very nearly had a good fixed rate deal, but needed 85% LTV and I wasn't confident we had that.

We originally only had a 5% deposit (paid £128k for house) and were quite confident that house prices had risen enough in those 2 years, but now prices have fallen and I'm worried it will turn out that we need to borrow more than 90%. Is this likely?

We've got someone coming round to do a valuation next week (this is free with HSBC and I think they normally do drive-bys, so does it mean anything that they are actually coming in?) My instinct is to tidy up, really make the house look nice etc, but will it make any difference? I know our kitchen really needs replacing, as the tap is broken and the laminate is all coming off the worktops - we are going to replace it this year but won't be in time for the valuation. Should I try and cover up stuff like that or will it not affect the value?

Thanks.

Im in EXACTLY the same situation as you.

I'm coming off a 2 yr tracker @ 5% - mortgage deal ends end of this month - i've gone for the HSBC discounted lifetime tracker at .79% above baserate - i've been accepted, and paid the £599 fee.

I had my offer letter today!!! and i had the SURVEYOR round yesterday for the valuation. (they acted really quickly - all done in a week)

I paid 170K for my place 2 yrs ago - which was a good deal!!! others in my road were going for 180 - 190 - but mine wasn't double glazed.

It still isn't! I've had quotes for it, but its so much hassle, and they're such cowboys!! I just wish i'd done it now, cos it would have helped with the valuation.

Anyway, its done now, re the surveyor i did what you did, i tidied up, made the place smell nice and put BLU down the LOO - LOL!!

I dont know whether or not to sign the offer letter or not, as whats the point as if the surveyors valuation doesn't meet 180K which will get me into the 90% LTV bracket then i won't be able to get the additional money to make up the difference, so i'll be forced to stay with my current lender, and pay 6.24% on a 5 yrs fixed or maybe 6.09 on a tracker (although these have probably gone up now cos i've left it) ARGH!!!!

Its fingers crossed time for both of us!!!!

GOOD LUCK!!!!

ixwood

A drive by valuation means just that. They drive by, have a look, then base their figure on the latest comparable minus some crash %. There's no point doing anything inside.

opinions4u

ixwood wrote: »

A drive by valuation means just that. They drive by, have a look, then base their figure on the latest comparable minus some crash %. There's no point doing anything inside.

They won't do a drive by for a high percentage loan.

KaratePigeon

Thanks for the replies.
The reason I decided to go with this HSBC tracker is becuase it was fee free, including a free valuation. So even if the valuation isn't high enough I haven't lost any money - although not sure I could find much of a deal if I need a 95% loan! On the other hand if it gets valued higher than I expect and I can get away with a 80% LTV I can go get an even better deal (unlikely I know, but you never know).

I guess I'll just tidy up and hope for the best then.

manikm

I heard from HSBC today - i scraped through into the 90% LTV bracket! HOORAY!

:beer:

So i have secured the HSBC lifetime tracker at 5.79% :j

I'm so relieved!!!!!

KaratePigeon

Congratulations :beer:

I'm aiming for the 5.99% one which isn't too bad I think.

Although the bloke who we thought was doing the valuation said he was a surveyor, so I'm a bit confused! Is having a survey done the same as having a valuation? :huh:

Trying_to_be_good

Surveyors are the professional who do valuations, so nothing suspicious going on!

Karate pigeon - you say your planning to get work done on improvements (the things you didn't really want the valuer to see) - why not wait a bit longer for those, but use the money to pay a bit more off the mortgage? Just a thought.

KaratePigeon

Thanks,
That makes sense!

Yeah we are getting new kitchen around Christmas time, I'm not sure that it'll add much value really though as it's only a little kitchen. And because I want it now, which I know isn't very mse but I'm pregnant and all my hormones are telling me to make the house nice!

Plus now our fixed rate has ended we are on Nationwide's variable rate (6.45%) so didn't want to stay on that too long!

BruTamUK_2

I wouldn't worry too much.
My friend just had his house valued for remortage.
He paid £119,000 for it 18 months ago. This was an average price for a 3 bed semi on his street. He needs to borrow £110,000 on a single wage (£29,000) to remortgage. 3 lenders had already turned him down on his income straight away.
He found one lender (HSBC I think) who said they would lend him the £110,000 on a 90%LTV. This means he would need a valuation of £122,000 or more. He's been panicking for weeks about it.
Similar houses are up for sale on his street now for £120,000 - £125,000 and not selling.
Yeterday he got the mortgage offer through. Valuation was £130,000!!
So much for a HPC!
Explain that one!