Does a Bank valuation of property mean anything?

JohnDoe1

I did a re-mortgage application and the bank did a valuation on my property. I don't know why, but I very conservatively estimated my property to be £220k when it should go for around £250k.

The valuation came back at exactly £220k! Do these valuations actually mean anything? I just plucked the £220k out of the air and it just so happens that what their valuation is.

Senior_Paper_Monitor

Generally (only exception I know of is Abbey on remortgages) the valuation will only ever be 'up to' the value you put on the application.

Thrugelmir

Purely means that the property is adequate security for the purposes of remortgaging. This is the surveyor is confirming to the bank. The valuation is for the banks benefit alone not yours.

Not a guide either as the price achievable should the property be put the market.

JohnDoe1

Thanks guys.

Was hoping it was something like that rather than a realistic price valuation!

Isleman

As a tip always try to get your property valued at maximum possible .
It will really help reducing your LTV in case you need to fix and get a better rate .