Some help re mortgage valuation please

amcg67

Hi all

i bought my house 2 years ago and have just went to renew my fixed rate deal. the mortgage company tells me my home was only valued at the time by their people at 69500. the homebuyer report fro mthe sale states 80000 and this is my understanding of what my home was valued at. the mortgage comapny say they havent seen the home buyers reprt, although at the time of lending i was asked for it and was tols their valuation would be based on it. they now say as my home has depreciated i cant even have the same del as i had before which was 15 percent deposit.

can anyone tell me wher i go next with this, cant understand why two valuations, weeksa part could be over 10000 different - and also why no one noticed? they say its my fault and not much they can do but i've lost all the equity in my home?

handytips

What did the valuation report say when you bought the house. Sorry to inform you but Homebuyer reports arent/werent worth the paper they were written on and any valuation given within will be one that the EA will have dreamed up. Check nethouseprices.com and see what price the properties in your street are worth, dont get caught up with the old my house is better than that house though, look for a like for like sale, this will give you a better idea on what your property is worth, however you must know how much deposit you put down originally, this figure will tell me/you what the property was bought for you. Surely you should know what you paid for the property, if you dont your solicitor will have.

amcg67

hi there

yes i pad 69 500 for it

so waht you're saying is even though a full valuation was done a tthe time for the report, it doesnt mean anything and the one done for the mortgage lender which is only the basic one is what counts?

i cant understand how the 2 could be so different.?

mortage lender says i need to get house revalued to increase my valuation in order for them to give me new fixed rate deal, but they can out me on a variable rate?

btw , i need to pay for the new valuation

i'm so gald you're happy to give advice its much appreciated

kingstreet

When you buy a property, the lender carries out a mortgage report and valuation which establishes the property is worth what you are paying for it and is suitable security for the mortgage.

In this case, the surveyor valued the property at the £69,500 you paid for it.

You also chose to have a Homebuyer's Report carried out. The surveyor gave you a market valuation. This is not the same as the valuation figure used for the mortgage. The basis of valuation can be different. Google " forced sale valuation" for an example.

The lender will base its lending on what its surveyor said at the time of the purchase. If you disagree, it's your prerogative to have another valuation carried out at your expense...