Remortgage house valuation

castell2000

Hi. Myself and my partner are off to our mortgage provider this weekend to discuss remortgageing as Our current deal has come to an end. Ovviously the rates that we are able to Get is determined by the loan to value i.e. percentage. My question is, do different mortgage providers value houses differently? Might I get a better loan to value by shopping around more?

dimbo61

If your current deal is coming to an end what does the mortgage revert to now ? SVR ?
That is your start point ! What LTV you now have depends on deposit put down, how long you have been paying the mortgage and IF? the price of properties has gone up or Down ! Where you live.

castell2000

I know exactly how much I owe but the only variable is the value the bank puts on my house. Will different banks value my house differently? Is there a standard system?

smileygill

In my (admittedly long-ago) experience, each lender has their own choice of valuer, and that's where discrepancies can occur; valuation is essentially subjective. Depends how accurate your first valuation is whether you choose to pay for another.

kingstreet

1. It ain't a remortgage.

A new deal with the same lender is a product transfer or a customer retention product. If you look at remortgage products online you are likely to be disappointed as these are for customers new to your lender.

2. Your current lender may take an indexed value, based on a computerised system which says your property was worth "X" then and is now worth "Y."

3. Your current lender may offer you a drive-by valuation or an internal inspection, at your expense, if the indexed valuation is lower than you think

4. A remortgage to a new lender may include a free internal inspection, but could include other transfer costs, so compare all the options.

castell2000

Thanks guys. You've been most helpful

MDL74

We bought our house two years ago for £300k. The house was in a poor state of repair and dropped his asking price by £35k. A smaller house with less land a few doors away was bought for £312k a few months after we bought ours. We've since spent the best part of £100k making improvements both internally and externally.

Guess what the valuation came back as - yep, £300k

I feel it's a bit of a con. I've since questioned this but they're sticking to their guns. They've offered to do a full valuation for £400 but i think this will be money down the drain as i submitted detailed before and after pictures of the work we've had carried out which they say they took into account. I need the house to be worth £360k to get into the right LTV bracket. The estate agent who sold the house to us has recently valued the house for sale at £380k.

The impression i got was that if i had paid £350k then it would be valued at £350k - i think that what i paid for it is irrelevant, as surely it should be valued on what it is now worth.

Gary123456790

You will struggle to get a valuation to match market value. It is not a market appraisal. It is a worst case scenario valuation based on the lender having to sell it quickly if it is repossessed. An estate agent's market appraisal is what they hope to get, nothing more.

As an example, you could spend £500 or £2,500 on a bathroom. The £2,500 one would look better and buyers might love it but to a valuer its just a bathroom. Who knows what bathroom might be in there if they come to repossess.

If you were close to the LTV boundary then it might be worth debating but it looks like you're too far off. If the rate is really worth having, consider going onto the standard variable rate for a period while you pay the mortgage down to get to the LTV - whether this is worthwhile will depend on how far away you are. It might take too long.

Gary.

Bluebell1000

We recently had a free revaluation from Santander. We needed our house to have risen by £5k to get to the 75% LTV bracket for our remortgage. Santander then refused to tell me the results of the revaluation or tell me how far off the LTV we actually were, only that it was over 75%. They recommended we look on Zoopla for the value....

After inputting our home improvements into Zoopla giving a £15k rise in value we had a valuation done through First Direct, who put us into the 75% bracket (so with the £5k value increase). So clearly there is a difference between the lenders values, but my advice would be to modify Zoopla before your valuation - just in case!

MDL74

Thanks Bluebell - have just checked zoopla and it's up to £321k before i'd made any changes for additional refurbs (which i've now done)

kingstreet

MDL74 wrote: »

We bought our house two years ago for £300k. The house was in a poor state of repair and dropped his asking price by £35k. A smaller house with less land a few doors away was bought for £312k a few months after we bought ours. We've since spent the best part of £100k making improvements both internally and externally.

Guess what the valuation came back as - yep, £300k

I feel it's a bit of a con. I've since questioned this but they're sticking to their guns. They've offered to do a full valuation for £400 but i think this will be money down the drain as i submitted detailed before and after pictures of the work we've had carried out which they say they took into account. I need the house to be worth £360k to get into the right LTV bracket. The estate agent who sold the house to us has recently valued the house for sale at £380k.

The impression i got was that if i had paid £350k then it would be valued at £350k - i think that what i paid for it is irrelevant, as surely it should be valued on what it is now worth.

Who is "they?"

Have you returned to your existing lender for a customer retention product, or applied to a new lender for a remortgage?

How has the value been established? Indexed/desktop system, drive-by, or internal inspection?

Please recount what you've done, otherwise the information you receive will be limited as a result. It may be more sensible for you to start a thread of your own, rather than taking over someone else's.