HSBC undervalued my house!

rburg

Im looking for any tips or advice following HSBC's ridiculous valuation on my house...

Im in the process of re-mortaging my lovely 1 bed flat in London and i asked HSBC (my current mortgage lender) to re-value my property (they would not use outside valuations... for obvious reasons that i now know). I was hoping to get a good valuation to lower my LTV and assumed the value had gone up significantly since buying it 5yrs ago, for well under the asking price as it was also a fixer upper!

However, apparently the flat (in Islington) is worth exactly the same (to the pound) as when i first brought it 5yrs ago. I know property has slumped slightly but there's no way this is the case... we renovated it to a very high standard ('average' according to them) at the time and even put in a floor (yep, there was no floor!). How can this be the case when the same properties on the same street are going for 30 grand more and in worse condition????

Has anyone had a similar experience with HSBC, im not sure what to do, they seem to have me over a barrell!

slummymummyof3

We remortgaged to HSBC is September and they didn't even do a valuation. Guess it was probably because our LTV was less than 30% based on an 'average' 4 bed house in the area???

CLAPTON

why do you want a revaluation?
why are you over a barrel?

GMS

rburg wrote: »

Im looking for any tips or advice following HSBC's ridiculous valuation on my house...

Im in the process of re-mortaging my lovely 1 bed flat in London and i asked HSBC (my current mortgage lender) to re-value my property (they would not use outside valuations... for obvious reasons that i now know). I was hoping to get a good valuation to lower my LTV and assumed the value had gone up significantly since buying it 5yrs ago, for well under the asking price as it was also a fixer upper!

However, apparently the flat (in Islington) is worth exactly the same (to the pound) as when i first brought it 5yrs ago. I know property has slumped slightly but there's no way this is the case... we renovated it to a very high standard ('average' according to them) at the time and even put in a floor (yep, there was no floor!). How can this be the case when the same properties on the same street are going for 30 grand more and in worse condition????

Has anyone had a similar experience with HSBC, im not sure what to do, they seem to have me over a barrell!

HSBC are beating all comers with their headline rates. Huge amounts of applications mean they can cherry pick the best deals.

They probably dont see a 1 bed flat (albeit in a good location) as something they will take a risk on. If it was 30% LTV or something really low like that then they would probably do it.

HSBC have instructed a valuer, and have most likely given the figure they had previously. The valuer will confirm it is worth that amount, not very often will they go higher than the estimated figure. Many times they will go lower.

From their point of view, you have OVER valued the property, not then undervaluing it.

rburg

thanks for your replies.

Clapton, the reason I wanted to revalue as i wanted a better rate. Having an 80% LTV would have insured me a better rate where as I've just missed out on that with the current valuation... i thought it would have increased in value since they last valued it 5yrs ago.
GMS, thanks for your comments, i guess it makes sense. I just wish i could get my 200 pounds back for telling me what i already know, what a waste of money.

thanks.

chezmck

I'm in exactly the same position with them today! My fix is due to end in January and I'd seen the nice 2.2% tracker so fancied a bit of that before it ends Oct 31st. Rang them today to do the paperwork shuffle and was told my £300k house was worth £184k:eek:!!! you can imagine my surprise and on their valuation I dont qualify for the 60%ltv and the preferential rate of 2.2%. I can have my own valuation done for £250 but to be fair I think valuers have been told to tighten up on their figures. I was put through to another department who did another calculation for me and said £211k which still shocking devalued the argument for a £250 valuation.
Nice headline offers but the hoops you have to jump through are a bit much.
sorry not much help but your not alone

rburg

that sucks. Yep, I would'nt waste your 250 quid... treat the wife or something instead, wish i had! What they mean by 'your own' valuation, is them turning for 2 minutes and writing down the exact figure you brought it for... its a joke. i'm in the wrong business obviously (although at least i sleep at night!).

chezmck

Cheers! ( I am the wife and your right £250 is a very nice handbag:D) now I wont sleep tonight thinking how clever I've been saving £250.

dimbo61

Had my home valued four months ago and its not gone up or down! one penny in 5 years so its a good job I have cleared over 50% of the mortgage on it in the last 5 years.
Paid a very nice man £250 to tell me something I already know ( due to recent sales of other houses in area)
Mortgage free is the way to go so get overpaying

alipops1986

Eeeek! You have all got me VERY worried! :eek:

I'm having my house valued tomorrow by HSBC, for a home owner loan - i don't currently have a mortgage.
I'm hoping for a valuation of between 90k-95k for my 2 bedroom, end terrace in a cul-de-sac and village location. I paid 84k for it about 18mnths ago, but have done some modernisation plus i bought it off a landlord who had had enough of tenants etc. Take into account he bought it for 50k i found out later, he made a significant profit despite the "cheap" price for the area. Current houses like mine in the same area are on the market for between 95-100k
Have got a offer in writing for 80% LTV, which itself has taken an AGE. I'm a teacher, no credit cards, no other loans or issues and i take home 1500 a mnth but it took my mortgage woman at HSBC about 3 weeks to argue the toss with the underwriters - we eventually won!
What frustrates me is they look at the figure u bought it for, and then either add on a % or just keep it the same. What's the point in bothering to view a house?! I am pretty sure this is what happens, following a bad experience with Natwest a while ago now.

Henry_P_Chester

House prices are falling and nothing is selling. HSBC are being realistic.

According to nationwide prices are around the 2005 level so they seem about right to me.