house valuation halifax index

metalgal

We have a mortgage of approx 113k with chelsea builing society. our fixed rate ended a while ago and we are on their svr. i was wanted to change it to a fixed rate (i like the security) and telephoned today to enquire. i was told that my house is valued at 97,701 as per the halifax price index. our last valuation was done in august 2007 when we got the mortgage with chelsea and it was valued at 172k. this obviously made me weak at the knees but it also shocked the advisor on the phone. she made sure it was the right postcode even checked with someone else if their could be a problem. i was recently looking at houses for sale in the area, its an old council estate all the houses are essentially the same and one was 145k there were others for less but they needed "modernisation". the advisor said we could have a revaluation but it would cost £75 but if our house is valued similarly we would have a much much lower repayment but if it still at 97k we are out £75.

i posted this here as i want to know has anyone else heard of such a dramatic drop in 3.5 years? obviously we got the house at the height of the boom but we thought we weren't in THAT much negative equity as we did have a ltv of 66%. back in 2007. we live in northern ireland which hasn't recovered as much as the mainland, but still a drop of 44%???? would it be worth having the revaluation?

IveSeenTheLight

metalgal wrote: »

We have a mortgage of approx 113k with chelsea builing society. our fixed rate ended a while ago and we are on their svr. i was wanted to change it to a fixed rate (i like the security) and telephoned today to enquire. i was told that my house is valued at 97,701 as per the halifax price index. our last valuation was done in august 2007 when we got the mortgage with chelsea and it was valued at 172k. this obviously made me weak at the knees but it also shocked the advisor on the phone. she made sure it was the right postcode even checked with someone else if their could be a problem. i was recently looking at houses for sale in the area, its an old council estate all the houses are essentially the same and one was 145k there were others for less but they needed "modernisation". the advisor said we could have a revaluation but it would cost £75 but if our house is valued similarly we would have a much much lower repayment but if it still at 97k we are out £75.

i posted this here as i want to know has anyone else heard of such a dramatic drop in 3.5 years? obviously we got the house at the height of the boom but we thought we weren't in THAT much negative equity as we did have a ltv of 66%. back in 2007. we live in northern ireland which hasn't recovered as much as the mainland, but still a drop of 44%???? would it be worth having the revaluation?

It sounds like it's a way to get you to complete another valuation, thus additional revenue for them.
It's also possible that they don't want you to fix as it would "lower the repayment"

You should do your own research. Certainly the drop of 44% seems unrealistic.

Why don't you post your local area and we can help to gather the evidence for you.
Alternatively, go the the Land Registry website and search your area, you'll then see how each area / type of property has faired

CloudCuckooLand

metalgal wrote: »

we live in northern ireland..

NI has dropped 40%, roughly.

Some areas 60%...
http://www.belfasttelegraph.co.uk/news/local-national/northern-ireland/house-prices-in-some-areas-down-60-14902771.html

Report from Q3 2010; http://rpp.ulster.ac.uk/research/housing-index/q3-2010.pdf

"It is now over three years since residential housing in Northern
Ireland reached an average price peak of over £250,000"

"the average price dropping below the £150,000
level for the first time since Q4 2005."

£250k to £150k is 40%. On the dot.

CloudCuckooLand

You will get http://forums.moneysavingexpert.com/showpost.php?p=39838634&postcount=1 fixed before seeking a revaluation visit, won't you..?

metalgal

i have to admit that is an issue but its getting sorted so should be done prior to any evaluation.

Graham_Devon

As it's in NI, its entirely possible.

Nationwide have a house price calculator. Don't know when you bought, but calculating a buy in Q4 2007, and looking at Q4 2010, the price drop is exactly 44%.

http://www.nationwide.co.uk/hpi/

Results:-
A property located in Northern Ireland which was valued at £172000 in Q4 of 2007, would be worth approximately £96121 in Q4 of 2010.
This is equivalent to a change of -44.12%.

macaque_2

metalgal wrote: »

We have a mortgage of approx 113k with chelsea builing society. our fixed rate ended a while ago and we are on their svr. i was wanted to change it to a fixed rate (i like the security) and telephoned today to enquire. i was told that my house is valued at 97,701 as per the halifax price index. our last valuation was done in august 2007 when we got the mortgage with chelsea and it was valued at 172k. this obviously made me weak at the knees but it also shocked the advisor on the phone. she made sure it was the right postcode even checked with someone else if their could be a problem. i was recently looking at houses for sale in the area, its an old council estate all the houses are essentially the same and one was 145k there were others for less but they needed "modernisation". the advisor said we could have a revaluation but it would cost £75 but if our house is valued similarly we would have a much much lower repayment but if it still at 97k we are out £75.

i posted this here as i want to know has anyone else heard of such a dramatic drop in 3.5 years? obviously we got the house at the height of the boom but we thought we weren't in THAT much negative equity as we did have a ltv of 66%. back in 2007. we live in northern ireland which hasn't recovered as much as the mainland, but still a drop of 44%???? would it be worth having the revaluation?

Even as moderate bear, I would say they have got it wrong. Spend the £75 and give them no peace if they fail to see it your way.

ILW

Is the house in NI?

myhouse_2

Have to say I was thinking "no way it's dropped that much" until I read you're in NI.
Yes, it probably has dropped that much.

Loughton_Monkey

Graham_Devon wrote: »

As it's in NI, its entirely possible.

Nationwide have a house price calculator. Don't know when you bought, but calculating a buy in Q4 2007, and looking at Q4 2010, the price drop is exactly 44%.

http://www.nationwide.co.uk/hpi/

Results:-
A property located in Northern Ireland which was valued at £172000 in Q4 of 2007, would be worth approximately £96121 in Q4 of 2010.
This is equivalent to a change of -44.12%.

OP says first valuation done August 2007. Nationwide HPI for NI was 659.4.

Nationwide HPI for Q4 2010 is 363.4

Hence drop is precisely 55% (well maybe 54%) according to Nationwide. Looks like they have been 'generous'. Bite their hands off!

[Deleted User]

metalgal wrote: »

We have a mortgage of approx 113k with chelsea builing society. our fixed rate ended a while ago and we are on their svr. i was wanted to change it to a fixed rate (i like the security) and telephoned today to enquire. i was told that my house is valued at 97,701 as per the halifax price index. our last valuation was done in august 2007 when we got the mortgage with chelsea and it was valued at 172k. this obviously made me weak at the knees but it also shocked the advisor on the phone. she made sure it was the right postcode even checked with someone else if their could be a problem. i was recently looking at houses for sale in the area, its an old council estate all the houses are essentially the same and one was 145k there were others for less but they needed "modernisation". the advisor said we could have a revaluation but it would cost £75 but if our house is valued similarly we would have a much much lower repayment but if it still at 97k we are out £75.

i posted this here as i want to know has anyone else heard of such a dramatic drop in 3.5 years? obviously we got the house at the height of the boom but we thought we weren't in THAT much negative equity as we did have a ltv of 66%. back in 2007. we live in northern ireland which hasn't recovered as much as the mainland, but still a drop of 44%???? would it be worth having the revaluation?

we paid for a valuation in 2007 came back at 149k,did the same last summer for additional borrowing and came back at 115k