How do banks work out your homes value for a remortgage?

johncolescarr

Just looked at Moneywise mortgage comparison and it says that Northern Bank are offering a tracker mortgage of +3.39% on mortgages up to 90% LTV, with £799 arrangement fee.

I am looking to remortgage and I am unsure of whether I have the 90%, according to Zoopla I have but who knows. How do banks determine your house value and do you have to pay for a survey to find out?

Thanks in advance to first time remortgager who wants to get off 5.4% APR SVR Standard Life

John

Chinkle

You'll be paying them to do a survey on your house to determine its value.

nikki1520

You do have to pay for a survey. Some companies send out a surveyor, and others seem to just look up the details on rightmove and charge you £400 regardless!

VIGILANT22

nikki1520 wrote: »

You do have to pay for a survey. Some companies send out a surveyor, and others seem to just look up the details on rightmove and charge you £400 regardless!

!!!..:rotfl:


They either do an on site survey or an AVM (Automated Valuation Model) ..commonly known as a desktop survey..........many lenders offer free vals on rmtgs....

johncolescarr

nikki1520 wrote: »

You do have to pay for a survey. Some companies send out a surveyor, and others seem to just look up the details on rightmove and charge you £400 regardless!

Yep, they charge £325 for the survey, so I suppose I've got to decide whether to take the gamble that the house is worth at least 10% more than mortgage since they only offer up to this LTV!

Thanks for all the replies

John

VIGILANT22

considering surveyors are working on behalf of lenders...i think i know the answer..you just have to read on here of all the undervalues happening.................

johncolescarr

VIGILANT22 wrote: »

considering surveyors are working on behalf of lenders...i think i know the answer..you just have to read on here of all the undervalues happening.................

I think you are right, I am not going to take the gamble. Just checked the small print and they take the lowest valuation range for the property so I don't think I really stand a chance seeing as I have found valuations from £120,000 to £160,000 from on-line resources (admittedly not the most accurate but I wonder where the banks get the data from)

Conrad

They will usualy contact local EA's for up to the minute market numbers - they certainly wont be using muppet zoopla.

dunstonh

Zoopla tends to overprice properties and is little more than a guess. My current Zoopla value is over 10% more than what I would get for it. Although its more in line with what it would be put up for sale for with an estate agent.

MB1919

dunstonh wrote: »

Zoopla tends to overprice properties and is little more than a guess. My current Zoopla value is over 10% more than what I would get for it. Although its more in line with what it would be put up for sale for with an estate agent.

That is my experience as well, having recently remortgaged. Zoopla came in at around 10% higher than the lender. Luckily I was still able to get a good mortgage deal, but only just! The valuation was free as well.

Andrew_Thomas

if i is a remortgage you should be able to get a deal with a free valuation