RBS Mortgage/Valuation Dispute! Looking to take legal action

Nervo1234

I currently have a mortgage with RBS of around £530,000! Recently they have put me onto their highest rate of interest (paying around 6%), my monthly mortgage payments are around £2700 a month and am struggling to afford it...

They have actually valued my property at £460,000 which is completely and utterly ridiculous as, properties in the area are well over £750k which is a conservative estimate...

So by RBS books, I am currently in negative equity with a LTV ratio of 115%

I am looking to dispute this with RBS as I truly believe my property is undervalued and does not reflect true market prices...

My LTV should really be around 70% with the valuation conservatively put at £750,000.

Just wondering what peoples thoughts are and wondering if I have a good case to dispute valuation and what the best cause of action is

kingstreet

I'm sorry, I don't understand.

Can you explain this;-

"put me onto their highest rate of interest."

Have you applied for a mortgage or done something to alter your mortgage?

TBH you normally have a product which may have a timescale added to it, then a follow-on rate which is typically the lender's standard variable rate.

I can't understand how/why a lender would simply do something in an arbitrary fashion and completely unprompted. Is there some business element we don't know about, like an overdraft or business finance secured on your home?

Nervo1234

Nope, nothing has changed on the mortgage from my side, been making regular payments etc... - I'm currently on their SVR and the rate RBS have put me on seems to be extremely high...

The issue is why are RBS undervaluing my house so significantly? If there was equity in my property, I would be able to remortgage with them or another lender..

I want to dispute the valuation!

kingstreet

For what reason are they revaluing your house?

It isn't normal for a lender to revalue a house for no apparent reason. If you can tell us why they are doing it, we might be able to work out the basis being used to do it.

beecher2

If you go to another lender they will do their own valuation so that might be the best step forward if you are confident that the true value is £750k. I'd imagine it is difficult to value houses at that level.

kingstreet

Ignoring the issue of the valuation basis.

Make an application to remortgage to a new lender as it is the new lender's valuation which will determine the rate for your new mortgage. Many offer free valuations as part of the remortgage deal, so it could cost you nothing to get a better picture.

Crossed with beecher's post.

Nervo1234

Kingstreet! I've sent you a PM, buddy! Thanks.

kingstreet

I've replied.

TBH I'm none the wiser. Hopefully the idea of getting a valuation from Hometrack might help.

BoGoF

Legal action........why??!!

poppy10_2

BoGoF wrote: »

Legal action........why??!!

He's entitled to compensation, innit.

Thrugelmir

The issue may well be that they don't want your business. So suggest you try remortgaging elsewhere.

Is your mortgage currently interest only?