Negative Equity - low bank valuation & SVR question

smileycaz2005

Hi All

Wondering if I could gleam some advice fro you all...?

I bought at the market peek and have a mortgage for £185000 (split into two Abbey deals; £101000 ends Nov, £83000 ends July 2010) I was expecting negative equity as foolishly we took a 95% mortgage to allow us to make home improvements... However on calling Abbey they've told us they value the house (according to their computer system) at £156000! I know the market has taken a hammering but I feel this is excessive... zoopla (not to be trusted I know) guesses at £175000, and as I'm in an area that consistantly significantly outperforms other parts of town I'm more confident with this figure...

My big question is - can I confidently get the bank to ammend their valuation or are Abbey known for being stubborn with it? (I'm worried that all the home improvements I've done have been of little impact to the house value). I know we'll still be in NE - but £10 000 seems like a more realistic sum to find... though whether there'll be an deals even then I' not sure...

My other question is - there's such a wide variety of oppinion out there - I just don't know where I stand with the SVR's... currently I'll save approx £150 p/m when my deals expire... but - do we think they're going to go up? And if so when??? Argh! It's so confusing - I don't want to play with my homes security - but it seems like I'm in a rock and a hard place.

I do have savings of £10000 but I feel that this should stay in an ISA as my husband is an IT contractor and has 'flexible' job security... Oh - and I have a small sum saved for a new kitchen in the next few months (a budget Ikea job - not a mega luxury one ) should I forget about making improvements for now as I'm not likely to see an increase in home value... ?

any advice out there please?

Cx

TonyMMM

Even your Zoopla £175,000 puts you in negative equity by 10k - arguing with the Abbey isn't going to get you a valuation likely to give you enough equity to move your mortgage onto a better deal (it would have to get to 200k +)

Go with the SVR and overpay the £150 you save to bring the total down.

Trying_to_be_good

I'd also forget about the kitchen for now and throw everything at the mortgage (and ensuring you have enough emergency savings) until it gets to a LTV you can remortgage with (preferably 90% or less).

You're in a good position to do something about it as you've realised the position you're in.