Estate Agent Valuation vs Mortgage Valuation

Piznington

Hi there,

My partner and I are considering re-mortgaging as there has been rumours that interest rates are due to increase in May and then twice more before the end of the year. We are currently on the standard variable rate so any increased in base rates will impact on our mortgage payments so we are looking to fix.

When we tried to re-mortgage 2 years ago, the mortgage company under-valued our house meaning we did not have enough equity for the deal and are concerned this may happen again. The house was valued recently by an Estate Agent, however we were wondering, in your experience, how much variance there can be between estate agent valuations and mortgage valuations as we need to understand how much equity we have in the house to see which deals we can look at (we're hoping to be able to go for an 85% deal as they have better fixed rates).

Any advice would be much appreciated.

Thanks.

HappyMJ

Cut at least 10% from the median of a few agents for a more realistic value. Maybe even 20%. Maybe more. They overvalue to get your custom it doesn't mean the property is really worth that much.

DVardysShadow

As HappyMJ says, EA's over value.

A surveyor valuation is an estimate of the likely selling price. An EA valuation is a recommendation for an sensible asking price with as much lumped on top as they dare risk their credibility to get you to go with them. The valuations are different animals

STOTTYCAKE_2

We have just re-mortgaged our house which ReedsRains valued in 2003 at £650000 and Countrywide surveyor has two weeks ago valued it at £400000. In 2002 it was valued for another re-mortgage at £350000 so someone is wrong. I have queried the valuation, especially as my property has always been in Council tax Band G and I bought my property in 1978 for £31000 which was at the time 3 times the price of properties in my village and since then we have carried out many improvements. Those properties are now valued at £200000. Countrywide say as it is a one off property they are valuing it in Band F. I am now applying for a council tax reduction but I hold out little hope.
I read with interest how surveyors are giving low valuations for fear of being sued by banks and building societies so no wonder people are having trouble getting mortgages.
Countrywide are digging their heels in about this valuation even though it is grossly undervalued so I worry now about being able to sell it, when I need to.