Halifax re-mortgage

Andyw999888

Hi all I'm looking for some help.
My current Halifax fixed rate ends this month and I went to see them about re-fixing for another 5yrs. I was offered 4.62% - rather than the 4.44% I found on the internet. Apparently this is because they are valuing my house at £145k whereas I have estimated £185k based on local house sales. To get the lower rate they want me to pay for a valuation, (£150 est). As well as the £1k for the new mortgage.
Has anyone else been in this predicament? If so what did they do? Can I complain to the manager - will it get me anywhere? The mortgage advisor certainly was not budging. It's almoust like they don't want your custom anymore.

Also does the fact that they are valuing the house low have an effect on anything else - maybe not now but in the future? I can't think of anything but would like your expert advice.

Any help greatly appreciated.

opinions4u

Andyw999888 wrote: »

My current Halifax fixed rate ends this month and I went to see them about re-fixing for another 5yrs. I was offered 4.62% - rather than the 4.44% I found on the internet. Apparently this is because they are valuing my house at £145k whereas I have estimated £185k based on local house sales. To get the lower rate they want me to pay for a valuation, (£150 est). As well as the £1k for the new mortgage.

Do you base your valuation on house sales or prices in the estate agent windows? There is a big gap in most parts of the country.

How much did you buy your property for, how much was it valued at when you bought it and when was that?

Has anyone else been in this predicament?

It's not uncommon in the current climate.

If so what did they do?

- pay the £150
- reduce their debt to qualify for the product
- go on to their 3.5% SVR
- remortgage elsewhere (paying the appropriate valuation, product and legal fees that go with it).
- go on to the SVR for a period of time and use that time to reduce the debt (hoping values don't come down fast). Then switch to a fix.

Can I complain to the manager

Yes. You could write to the Pope too if you like.

will it get me anywhere?

No. It's their lending policy. The manager can't change it for you.

The mortgage advisor certainly was not budging.

Neither can the mortgage adviser.

It's almoust like they don't want your custom anymore.

There is a credit crunch on. They have less money to lend. Some lenders are actively encouraging customers to move elsewhere.

Imagine for a moment that the Halifax don't place their own indexed value on their customer's properties. How would they decide how much it was worth? They'd send a valuer out. At your expense.

Remember when you bought the house? They didn't say "ok Andy, you say you're paying £150,000 for it. In that case we believe you so we won't bother with a valuer".

If you want the product, you pay the fees.

Andyw999888

Opinions4u -
Information and a spell checking service as well.

I, unlike you, am new to all this - and I don't think I will be bothering again, if everyone is like you.

Maybe you should take a look to the right of the page...
FORUM Etiquette
Pls be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree courtesy helps.

There was no need for your sarcastic remarks.

opinions4u

Andyw999888 wrote: »

Opinions4u -
Information and a spell checking service as well.

Spell checking?

I, unlike you, am new to all this - and I don't think I will be bothering again, if everyone is like you.

Maybe you should take a look to the right of the page...
FORUM Etiquette
Pls be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree courtesy helps.

There was no need for your sarcastic remarks.

With the exception of my reference to the Pope (for which I apologise, it was a bit glib) I believe the rest of the reply gives you the information you are asking for. Your question is certainly reasonable to ask, I have tried to explain how and why the circumstances have arsien. While it might not be what you want to hear, it is where you are at the moment.

You didn't answer the request for additional information on values:

Do you base your valuation on house sales or prices in the estate agent windows? There is a big gap in most parts of the country.

How much did you buy your property for, how much was it valued at when you bought it and when was that?

Other posters may be able to assist more with that information.

money_maker_3

Have you worked out how much cheaper the 4.44% would be a month in comparison to the 4.64% you have been offered?
The fee is an extra £250 as Halifax assume your LTV is over 80% so if it is only going to save you £5 per month for the 5 years you would save £300 BUT you would of had to pay the valuation fee to have got it.

If you contact your mortgage reviewer in the Halifax office again they will be able to work this out for you, but if you are not going to save enough, then you have no other option if you want a fixed rate other than to move to another lender.

Andyw999888

Thanks for the info Money Maker.

To be honest my real gripe is the way lenders might try to undervalue a property for their own gains. And I am the one expected to pay out for a 'realistic' valuation.
Interesting article: timesonline.co.uk/tol/money/property_and_mortgages/article6077635.ece

Opinions4u thanks for the PM + the original value was £128k seven years ago.

Will accepting the Halifax 'low' valuation, as it stands, impact on anything in the future? I can't think of anything, but just want to make sure before proceeding any further.

poppy10_2

Andyw999888 wrote: »

Will accepting the Halifax 'low' valuation, as it stands, impact on anything in the future?

No .

money_maker_3

Andyw999888 wrote: »

Thanks for the info Money Maker.

To be honest my real gripe is the way lenders might try to undervalue a property for their own gains. And I am the one expected to pay out for a 'realistic' valuation.
Interesting article: timesonline.co.uk/tol/money/property_and_mortgages/article6077635.ece

Opinions4u thanks for the PM + the original value was £128k seven years ago.

Will accepting the Halifax 'low' valuation, as it stands, impact on anything in the future? I can't think of anything, but just want to make sure before proceeding any further.

A realistic valuation for the Halifax is one that they think they can get if they have to reposses your property !!

A bank will very rarely give you as high a valuation as an estate agent for very good reasons
The valuation they hold is an indexed valuation so that they d not have to charge you for a valuation all the time, you only have to pay if you do not agree with it, but it is there Purely for Halifax, it will never affect anything else

opinions4u

Andyw999888 wrote: »

To be honest my real gripe is the way lenders might try to undervalue a property for their own gains. And I am the one expected to pay out for a 'realistic' valuation.
Interesting article: timesonline.co.uk/tol/money/property_and_mortgages/article6077635.ece

Before they used their own indexed valuations, everybody had to pay for a valuation. I remember when I first got involved in mortgages having to charge a customer £70 to revalue their house. They owed £1. They were raising £3,000 and they estimated the value at £50,000. By using indexation, they have massively reduced their income from valuations, quite deliberately.

the original value was £128k seven years ago.

The Nationwide index certainly looks more favourably for the valuation on my old post code, than the Halifax does. Unofrtunately it doesn't change anything with the Halifax (and I don't know how Nationwide would apply it to their lending criteria either). Ultimately these indeces are based on the lender's mortgage cases within specific post code areas. When sale volumes are high the sample is bigger and the accuracy is more reliable. In the current market indexation could be based on a couple of recent sales on the local former council estate that has a similar post code.

It may be that Halifax has chosen to arbitarily swipe an extra 20% off their indexed value across the board, over and above the true indexation, with a view to lending more prudently. Checking my own mortgage online with them, this doesn't seem to be the case as they have knocked 17% off over the last year. Seems about right. If they have I doubt very much it would be about increasing their valuation income (although this would be a side effect). Their new masters at Lloyds may have demanded more prudent lending in the current climate. Something HBOS and their Corporate arm should have thought about a year or two back!

Ultimately, the fairest way of obtaining the value of a property is for somebody to value it properly. And that is a judgement as to how much a lender could sell the property for if they had to repossess, not an estate agents view as to how much it should go on the market for. That costs money and all lenders would pass that cost on to you either through an up front fee or by pricing it in to the product.

Will accepting the Halifax 'low' valuation, as it stands, impact on anything in the future? I can't think of anything, but just want to make sure before proceeding any further.

I can't see anything that would.

Andyw999888

Thanks for the help. It's good to get to run things past you guys.