Valuation with Direct Line.

mstopham

My BH is coming to the end of her discounted period with SL and is looking at changing provider.

She has spotted a BoE Base rate tracker with first direct at +1.49% (So 3.49% currently) This is also an offset mortgage.

The problem is the LTV. She bought the house for £119950 in Jan 07. She has approx £104000 mortgage on it and approx £9000 in savings she can pay off a chunk of the mortgage with.

By my reckoning this would bring her to about 80% LTV if the house is worth the same as when bought.

Looking at online valuations they range from £108,000 to £125,000 for her house by typing in details such as post code, number, purchase price and purchase time.

What I would like to know is if First Direct tend to value high or low for mortgaging purposes?

dwsjarcmcd

My guess is that she has virtually no chance of maintaining the value of a property bought in Jan 07. Take the word 'virtually' out if it was a new build.

No-one is valuing high on properties, infact valuers will be factoring in further falls.

_Andy_

mstopham wrote: »

What I would like to know is if First Direct tend to value high or low for mortgaging purposes?

It isn't the lender that will value it, it will be a valuer.

Realistically any valuation for mortgage purposes would, I think, come in at less than the 07 price.

Most valuations are conservative as we're in a falling market.

dunstonh

If you take the national average you would be looking at a value of around 15% less than a 2007 price. Average means some more, some less but its a good rough guide.

mstopham

Thanks for the responses, gives me an idea. I was under the impression though that prices above the national average were coming down faster than those below it.

The conservative valuations will probably scupper any chance of getting a better deal for the near future anyway.

smckay

I was in a similar situation a few months ago where I applied to FD with my own estimation putting me at 80% and had applied for the free valuation.

As I was on the limit FD paid for a standard valuation and when the valuer came round luckily he agreed with my valuation so we went ahead with the mortgage application.

If i had not meet the LTV of FD they would of either continued anyway or told me I was not suitable.

I had spent no money up to that point so it was worth my time doing.

Good luck

SuperMarianPahars

See the thread started by me today - I'm in a similar situation and have found they are valuing very low. Has she considered getting a personal loan to top up the savings and push the amount she needs to borrow down to that 75% threshold? Do the sums - it might work out cheaper than the other mortgages on the market.