Current lender Will not budge on valuation!

rutsy

I am looking to remortgage to release some equity, but also to can a better deal now my fixed term has ended. My current lenders, one of the UK's main banks have given me an up to date valuation by phone, which I believed to be ridiculous, even in the current climate - they have valued at £91,000 - it was worth £145,000 2 years ago!

I disagreed with this, therefore got 2 independent local estate agents, as well as another bank, who are part of/an umbrella company of my current mortgage lenders to value my house and all 3 valued at £125,000. I challenged my bank, however they advised they were sticking to this as the guide they use is what they go by, some sort of pricing index. They advised if I wanted another quote, then a full survey/valuation would be needed by them and I would have to pay £300.00, however they advised they were likely to not up their original phone valuation by much if at all.

Is it usual for your current mortgage lenders to down value your house by so much if you are already with them and want to remortgage with them, and if so would I be better changing lenders?

opinions4u

Turning the clock back 20 years, there was no such thing as a lender estimating the value of a property, by index or any other method.

They would always insist on a new valuation being obtained where additional funds were being raised.

By having an indexed valuation, lenders significantly reduce the number of valuations needed, but that doesn't mean that they should never value.

The fairest way of establishing value would be a revaluation. If you want it, you have to pay for it. If you don't want to pay for it, you are accepting their estimated value.

(£300 does sound steep as a fee though!).

VIGILANT22

You will find many post similar to this on here. By the way estate agents are not surveyors, they are salesman who know the market but are not quailified to give a lender a valuation...don't know what you mean by a bank valuing your property??...who from the bank?
Now with so few lenders in the market you may find even if you change lenders it could be the same surveyor who comes back to do your valuation....as so many of them use the same panel..

rutsy

I dont mind the cost of £300 - its the fact that they have pretty much told me that even if I do pay, they are not likely to change mind on their phone valuation or if do it wont be by much. From what they have said I will just be throwing £300 down the drain wont I ??

rutsy

I understand the estate agent thing - My bank is Natwest so I went to another bank First Active also who are part of my current lenders, who are all part of RBS. I made an application and they sent out their surveyor who valued at £125,000 also

rutsy

Forgot to say was happy they valued at £125,000, which is what I wanted, but did not go with them as deal not as good as originally thought due to high arrangement fees etc

VIGILANT22

Yr bank is nat west and they have valued it at 91k and First Active valued it at 125k.....interesting considering they're part of the same group....RBS....I would call back and ask to speak to someone more senior stating the 1st Active val which was done on site and not a desktop valuation...

rutsy

Thats what I thought...how can two valuations from same group be so drastically different!

Thanks for advice I will speak to Natwest again

VIGILANT22

rutsy wrote: »

Thats what I thought...how can two valuations from same group be so drastically different!

Thanks for advice I will speak to Natwest again

Bacause one is a desktop val and the other they actually came to the site...