I want to remortgage but don't know the value of my property

chocoholic_chick

I had a quick look at whether it was possible for us to remortgage today. Brief overview is we bought our house for £123,500 in 2007, current mortgage is £98,500 and obviously house prices have dropped since we bought it. Have spent £6000 on a new kitchen and £11,000 on a new conservatory since buying the house.

First direct do 90% mortgages but looking at online sites different valuation sites have put our home anywhere from £65,000 - £115,000.

I rang first direct to see how they would value our property and they asked what I thought it was worth (?) I explained that we paid £123,500 for it 5 years ago but would think it would be between £110,000 - £115,000 and she seemed to think that was ok, or that we could even base it on what we originally paid to get a better LTV but I don't think this can be right??

I just don't want to start the process then find out our LTV is too high so we can't proceed. Has anyone had any dealings with first direct and do you know how they get the valuation on your home?

edinburgher

Surely banks obtain a valuation before calculating LTV for a remortgage? The 'advice' sounds wooly at best!

chocoholic_chick

I've no idea! Thats what I was ringing them for to find out what the procedure was as it'll be a waste of my time and theirs if I don't have the correct LTV. Surely you can't just say well I think my house is worth x amount and they just take your word for it?!

Sorry just realised I probably should have posted this on the mortgages and endowments board

kaz100jay

Hey hun

When we were in our old house we remortgaged and all we did was phone 3 estate agents asking to come give us a quote (we did say we were thinking of moving) and then from the 3 gave the quote to the bank, they in turn said they would do their only valuation (but they didn't unless they did a drive by valuation!!)
And the remortgage went straight through

xx

happycamel_2

I'm with Santander but they didn't revalue it from the initial purchase valuation and I bought in 2007 too. I refixed in 2010. Sometimes they reindex based on average house price movements in an area (by postcode I guess) but only outside a time limit. It's only 5 years since you bought so they may be happy to work on the initial purchase value still.

Spiggle

chocoholic_chick wrote: »

...

Sorry just realised I probably should have posted this on the mortgages and endowments board

Hi chocoholic, I agree with you on the above!

I think it's also useful to find out what properties near you have actually sold for in recent years (rather than arbitrary valuations). I have to say I have never found info from FD to ever be wooly or incorrect. Usually surprising and often slightly unbelievable but never wooly.

And you do have a fantastic track record inasmuchas you have cleared £25k off the original mortgage in five years, you have invested in the property to the sum of £17k and continue to clear your loans sensibly. That seems a pretty good record to me!

Wishing you luck with it all.

Take care,
Spigs

lulabelle1

If you on Nationwides website and look at the tools and calculators section there is a little tool in there that allows you to calculate your house value. You just input when you bought, your postcode etc etc and it tells you the value based on all the increases/decreases - I'm sure it's not 100% but at least it will give you a guide and put your mind at rest.

chocoholic_chick

Funny thing is I could of sworn I posted it on that section, was only when I was confused why I couldn't see my thread that I realised what I had done!!

Used that nationwide calculator and that puts it at £111,341 so about what I thought, obviously I can't put on there that we've put a conservatory on the house since then which may push it up a little? The problem with looking at recent house prices is a couple of our neighbours priced really below the market value for a quick sale, one went for £97,500 ( though it needed modernising and didn't have a conservatory or porch like ours ), worked out the average value is just over £114,000.

Thanks Spigs just wish we were in a position to have been able to OP before now, but with the spends on the house and getting married last year we just haven't had the cash!