Valuation for re-mortgage

MascaraMinx

We are desperately trying to get off our current NRAM mortgage, and Santander have got a 2 year fixed deal that they are willing to offer us but the interest rate we qualify for depends entirely on the LTV ratio.

Santander have quoted us for a great deal assuming our house is worth £220k, as this valuation just brings us into the 80% LTV bracket. However, if it's worth less than £220k, we'll qualify for the higher 85% LTV interest rate which means repayments will be £75 per month more.

We have a valuer coming this week, and I'm wondering what the likelihood is that we'll get the valuation we need. Our house is in the middle of being cosmetically decorated and needs a new kitchen, but has new doors, windows, wood floors, built in wardrobes, fitted blinds etc - I'm not sure what things the valuer will be looking at? We both thought the £220k was a little on the high side. Any advice about valuers/ what they look for so we can manage our expectations?

notanewuser

MascaraMinx wrote: »

We are desperately trying to get off our current NRAM mortgage, and Santander have got a 2 year fixed deal that they are willing to offer us but the interest rate we qualify for depends entirely on the LTV ratio.

Santander have quoted us for a great deal assuming our house is worth £220k, as this valuation just brings us into the 80% LTV bracket. However, if it's worth less than £220k, we'll qualify for the higher 85% LTV interest rate which means repayments will be £75 per month more.

We have a valuer coming this week, and I'm wondering what the likelihood is that we'll get the valuation we need. Our house is in the middle of being cosmetically decorated and needs a new kitchen, but has new doors, windows, wood floors, built in wardrobes, fitted blinds etc - I'm not sure what things the valuer will be looking at? We both thought the £220k was a little on the high side. Any advice about valuers/ what they look for so we can manage our expectations?

It's not really about what's in your house, it's about what other similar houses have sold for recently. Have any been above £220k?

Thrugelmir

Surveyors will look past cosmetic issues. As small part of overall value in the main. Every area has a price ceiling and value of your property is determined more by those around it.

MascaraMinx

I would say £220k is at the higher end of the market for houses like mine. The ones that have achieved that are very well appointed. Those that need modernisation probably achieve about £190k. I reckon ours falls in the middle of that range.

shortchanged_2

MascaraMinx wrote: »

I would say £220k is at the higher end of the market for houses like mine. The ones that have achieved that are very well appointed. Those that need modernisation probably achieve about £190k. I reckon ours falls in the middle of that range.

Lets be honest here, if you think your own house is overvalued at £220K then it is highly, highly likely that it will not be valued at that price.
Most people will tend to overvalue their own property.

MascaraMinx

So why do they bother coming round to view your house then when they could just look on nethouseprices/ rightmove etc? It was Santander who proposed the £220k value as they had remortgaged someone nearby who got that valuation.

notanewuser

MascaraMinx wrote: »

So why do they bother coming round to view your house then when they could just look on nethouseprices/ rightmove etc? It was Santander who proposed the £220k value as they had remortgaged someone nearby who got that valuation.

Because they need to check that you haven't done anything really stupid to the inside (like putting your bath in the kitchen or knocking down walls that could damage the structure of the building).

MascaraMinx

Update - in case anyone else finds themselves in the same position..... The valuation came in a t £220k! Which i still think is high, but Santander are happy with it so happy days!