Challenging Santander's "Electronic Valuation"

DayTripper

We are trying to secure a new mortgage deal with our existing lender, Santander. We purchased in 2011 for £250,000 and took out a £200,000 mortgage so as to access cheaper rates available at 80% LTV.

Now Santander are telling us that their "electronic system" has revalued our house at £230,000, giving us an an 84% LTV. For a two year fixed rate deal with no fee they are offering us 4.69%. I asked what the rate would be for an 80% LTV - 3.29% for a similar deal, a considerable saving (about £150 less per month in repayment terms).

Santander tell us that they only do a full revaluation if significant work has been carried out to the house (it hasn't), but they usually rely on their "electronic valuation", which relies on housing data trends (not sure whose data).

I have valued our house using Zoopla and they give a range of £244,663 - £258,415. Even their lowest estimate would achieve the 80% LTV we require.

I would like to challenge Santander's valuation - which represents a drop of 8% on the purchase price and is wildly different from the Zoopla valuation. They say that they won't do this, but I have put in a formal complaint, the result of which I am waiting to hear. After all, it is in their interest to undervalue the property if it means they can charge us a higher interest rate.

We are not in a position to remortgage with another company. I would be grateful for any advice.

Let_Us_See

If you feel that strongly phone the lender and request a physical valuation although there will be a charge.

Simon_gloster

Ridiculous to complain without tangible evidence. Zoopla isn't one if them by the way.

Remortgage to a completely fee free lender (plenty out there). Whatever the free val comes at from a human you better use that as benchmark. And before you go complaining to your new lender for undervaluing, the likelihood is they'll only drive by anyway, hence it's free to you.

Overvalue, underachieve is my motto.

Hope your estimate comes close so it saves you a few £'s.