The thread where you tell my husband to get real!

mic200202

Some lenders may use an Automated Valuation Model (AVM) to work out values, or use a surveyor to do a valuation,but it depends on which lender you go to. The strategy of going in higher doesnt make much difference since the surveyor or AVM doesnt know what you have input,the lender only asks you this to get a general idea of the loan to value (which affects the product etc). If your current lender has offered you a deal they may be holding a valuation internally which would be a bit of a guide.You could ask them if they have this.Some lenders, however ,don't look at current values when giving new deals for exisiting customers regardless of LTV.If attempting a re-mortgage then you may well get a free survey so its up to you if you want to try this,but the input figure wont make any difference to the outcome.

StevieJ

Stick it in at what you paid for it, the bank will value it and give you an idea of what you could achieve.
Then don't bother and go back in a couple of months when interest rates will be much lower.

firesidemaid

just a thought.

i don't know what your outgoings are like, but with your combine salary you can afford to overpay quite a bit and therefore get the ltv down anyway.

do you have any savings?

feesh

firesidemaid wrote: »

just a thought.

i don't know what your outgoings are like, but with your combine salary you can afford to overpay quite a bit and therefore get the ltv down anyway.

do you have any savings?

No, we just spent all our savings on the house - not that there was much of them - we're both only recently out of debt (university hangovers continue right into your late 20s it would seem!).

We had to have some pretty major repairs done to the house which we didn't anticipate when we bought it.

We still have to pay off OH's parents for some of it, but hopefully our forthcoming bonuses will see that off. Then I want to try and put away 3 months' wages equivalent in savings before we start making mortgage overpayments.

I will be a mortgage-free-wannabe someday, but not just yet

Gorgeous_George

I assume you want to borrow £186K.

For a 90% LTV your home needs to be [strike]worth[/strike] valued at £207K. For 85% LTV it needs to be worth 219K.

So, find out what your preferred deal requires and value it accordingly. Then, if the lender really wants to lend to you, their valuer will come back with a suitable valuation

GG

dimbo61

If you can get a 5 year fix with your existing lender under 6% then I would go for that and make sure you are allowed unlimited overpayments.
Then overpay, overpay and just incase overpay a bit more.
90/95% ltv income £86k a year and £186k mortgage !
Go for a long term fix forget about interest rates and get on with life and overpay on the mortgage debt.

sarkin

His latest email said "OK, lets forget even trying to remortgage then. You need to go in high and if they value it at less, then fine we walk away and stick with current mortgage. I’m not going to make a mortgage application and tell them it’s worth 200k as that’s asking to borrow 90+%. It won’t happen, similarly if they value it at that."

Your husband is spot on, it is not for you to decide how much the house is worth, find a lender that offers free valuation. When you have this information you know where you stand.

temba

I just applied for a new mortgage and my mortgage advisor "estimated" that my house was worth 180K... I have no idea where she got the figures from....

Then the new mortgage company came and valued my house at 130K:eek:

I was pretty shocked... as (like everyone else) I was in denial that this "housepricecrash" would affect MY HOUSE as well....

It didn't matter to me as I still had loads of equity in the house. However, you will most likely have a surveyor on your doorstep too.

becs

My experience is valuers are valueing way below true market value to enable them to screw you on the deals! We applied with one mortgage company and they did a desk top valuation of £198k on ours which we thought was low but was still enough to give us 40% equity! However another company we applied to sent someone out who valued it at £184k! The desktop valuation that was done didn't take into account a large extension and full modernisation of the house that we have done in the last year and yet the valuer that came out from the other lender and saw all this valued it at £14k less. This conveniently for them meant that we were under the 40% equity and therefore went onto higher rates with them! Nice that when the banks get themselves into trouble they try and stitch up responsible borrowers instead!

Mozette

Husband = man. Therefore you are right.