Remortgage for Deposit for New Mortgage?

PJB

Hi,

We have prop with 180k mortgage, have applied to remortgage and valuation came back as 315k with Halifax! Prop is 5 bed, 2 bathroom, detached with garage, drive and garden in Borough of Harrow, we feel this is a large undervaluation even in the current climate. 1/2 bed flats next door sold for between 165k and 230k when sold in Dec 06.

The prop is the only type in the road/nearby, most are much smaller terraced/semi detached and i think that the valuer has looked at 3 bed prices, which are around the 270 mark and valued it from that, ie: not taken into consideration the facts that it is detached, larger etc.

We are trying to raise as much as we can as we need a personal prop and will be renting first prop £1700 per month for the next 5 years through the council. Before you say it, we cannot live in the first prop for reasons i cannot go into, nothing illegal!

We need 325-350k minimum for the second prop, and with the current valuation can only raise 65k for a deposit which is 22.5k short of what we would need to get a decent (in current climate again!) mortgage with 25% deposit.

I have heard on radio and read here and elsewhere that there are 1/2 decent mortgages about with a 15% deposit, can this be true and if so where? My IFA says they are there but very difficult to get and the rates are not that favourable. I have trawled through many webpages and this seems to be the case, but i would appreciate any help, advice, experiences (good and bad) etc.

Sorry for such a long post but i am very busy for next couple weeks so wanted to give as much detail as possible.

Thanks in advance for any help, assistance etc and reading!

opinions4u

Okay, take a look at the following sites to give you an idea as to whether or not the valuation is realistic:

Nationwide House Price Calculator to see if the value compares to Halifax

www.rightmove.co.uk to see what other houses have actually sold for (usually 10%-15% below the asking price)


For mortgage deals take a look at:

www.moneyfacts.co.uk and

www.moneysupermarket.com/mortgages


From experience, most people over-estimate the value of their own home.

From experience, valuers for lenders are usually conservative in times of falling house prices. And who can blame them? They need to tell the lender how much it should sell for if it was repossessed today.

PJB

That was quick, i have looked at the mortgage deals sites but what they say and what you get are not always the same!

I honestly do not feel we are overvaluing the prop, it is not our home so to speak but i do feel the valuer is undervaluing and accept your reasonswhy he may have done this. What evidence could be used to show this and where to get it? Also, would it be worth paying for an independent valuation to support or scupper our case!

PJB

Also, as they have valued prop does anyone know what level of credit check would have been done so far? Would it be worth applying elsewhere in the hope of higher valuation?

PJB

Anyone please?

PJB

Anyone else?