Revaluation

missmoneybags_4

I hope somebody can help.

I'm with Abbey for my mortgage and I have two products, one of which is due to renew this year. I called them last month and they said that my house is worth 225k and the thing is I paid 275k in Oct 2007.
I fully understand that there has been a recession and that house prices have dropped but honestly, by this much?

I asked them how they valued my house and they said it was by Halifax index link and that if I wasn't happy with this I could pay £65 for them to send somebody out to value the propery.

My neighbour sold their house in October and their house is link detatched and on a smaller plot and managed to get 275k. My house is detached on a plot that is maybe double theirs.

I paid the £65 and the valuer has valued my house at 236k. I really think this has been undervalued and I don't know what to do?

The valuer was the same valuer that valued the house in the first place so I have a report stating he valued it at 275k in 2007. The valuer didn't stay 2 minuted and didn't really look at things.

The thing is i'm not sure if the Abbey have done this on purpose so I'm put on a higher interest rate.

I really don't know what to do as I feel there is something wrong here.

Please can someone offer advice?

JA1000

What company was the valuer from?

Have you used right move for comparables but ONLY use houses which are SSTC, small tick box. Do you know for sure your neighbours sold for that price exactly, what proof do you have?

dunstonh

I fully understand that there has been a recession and that house prices have dropped but honestly, by this much?

It's only an 18% difference. Assuming you bought slightly over priced (was it a new house?) then an 18% drop is not unreasonable. We are about 15% down around here.

I paid the £65 and the valuer has valued my house at 236k. I really think this has been undervalued and I don't know what to do?

You can ask Abbey if they will accept a full survey which you would pay for. Or you can accept that prices have dropped. You could provide some evidence of actual sale prices on houses the same as yours.

The valuer didn't stay 2 minuted and didn't really look at things.

Its a mortgage valuation. There isnt a need to look at much.

The thing is i'm not sure if the Abbey have done this on purpose so I'm put on a higher interest rate.

They haven't. They are pricing it in a market for quick sale at a time when house prices have fallen and could be set to fall again. In a rising market they often let you get away with paying more than its worth but it in a house price recession you don't. So, you often get a bit of a double whammy if you bought your house at the top of the market. (adjustment in valuation pricing method and house price falling)

getmore4less

You don't have to renew, whats the follow on rate?

When is the other bit out of its promotional period and what is the follow on rate for that?

Cannon_Fodder

Looks like the surveyor got it spot on;

[IMG]http://www1.landregistry.gov.uk/houseprices/housepriceindex/report/default.asp?g=1&gt=1&a=West+Yorkshire&s=01 January 2007&e=01 February 2010&t=1[/IMG]

missmoneybags_4

I've always gone for a fixed rate as you know where you are at the end of the day. With an election looming I can only assume that the only way is up for the mortgage rates so once again the reason I would like a fixed rate.

I went on a website called nethouseprices (saw this on MSE) and this showed the sale of the neighbours house so this is where I got the figure from.

Do you think I should gather all of this evidence and send it to the Abbey? If I went for a full survey what kind of costs would this attract?

luckyfool

You could look at remortgaging to a different lender instead where there would be a free survey. Of course you may just get the same answer on the valuation figure!

beecher2

Are you liable for an ERC on the product which hasn't expired? If so moving lender might not be an option at the moment - what about sitting on the SVR until your other product expires and then remortgaging it all together.

brit1234

missmoneybags wrote: »

I hope somebody can help.

I'm with Abbey for my mortgage and I have two products, one of which is due to renew this year. I called them last month and they said that my house is worth 225k and the thing is I paid 275k in Oct 2007.
I fully understand that there has been a recession and that house prices have dropped but honestly, by this much?

I asked them how they valued my house and they said it was by Halifax index link and that if I wasn't happy with this I could pay £65 for them to send somebody out to value the propery.

My neighbour sold their house in October and their house is link detatched and on a smaller plot and managed to get 275k. My house is detached on a plot that is maybe double theirs.

I paid the £65 and the valuer has valued my house at 236k. I really think this has been undervalued and I don't know what to do?

The valuer was the same valuer that valued the house in the first place so I have a report stating he valued it at 275k in 2007. The valuer didn't stay 2 minuted and didn't really look at things.

The thing is i'm not sure if the Abbey have done this on purpose so I'm put on a higher interest rate.

I really don't know what to do as I feel there is something wrong here.

Please can someone offer advice?

Hi 2007 was the peak of the housing bubble where house prices rose insanly caused by mass fraud, far to low interest rates and very lax lending. So of course prices are going to fall a lot from the 2007 levels.

Poperty prices are set to fall a lot more. You home hasn't been undervalued its more likely still overvalued and set to fall further.

:exclamati Remember homes traditionally go up above inflation if you add value ie, extentions, roof conversions. All these years of double didget hpi was just a unsustainable illogical bubble where you unluckly bought at the peak of the hysteria.

They have not undervalued your property

JA1000

Happy when my Abbey rate fell to 1% above BofE - why the hell would you want to fix at a higher rate just to 'know where you are'

With interest rates at 0.5% there is only one way - up no matter what happens.

What is your current rate and what will it revert to - lets put some common sense and figures to this.