What will first direct value my house at?

fiffio99

Looking to buy out the last 2 years of my current RBS 5 year fixed to move to a much better rate with first direct.

Bought house in 2010 for 136k, the home report value (in scotland) was £150k. The sellers were moving down south so got a great deal. Similar house but not as nice or quite as large is currently on the market and home report values that house at 150k. house is only 7 years old.

Even though we're 3 years later will first direct value the house at what I paid for it or will they value at the current home report rate which I'm positive will still be £150k as not much change in property prices in area KY11.

The valuation is critical as if its at £150k it gives me the magic 65% ltv. Can anyone also advise how long in advance I can tie up a rate with first direct?

avantra

We were in a similar position with FD.
Bought with FD mortgage in 2010 for 160k (South West) and remortgage a month ago to their 2.6% tracker. Needed 65% LTV like you. Before remortgaging we decided we can pay in another 5k to bring down our debt.

On the phone they said they can only lend based on the original sale value of 160k minus our deposit (25%) plus repayments in the last 3 years.

We bought the house at a discount of 40k compare to other houses in our street as it needed fair amount of work (it was a 1960's time capsule when we bought it :rotfl:). So we were convinced that similar houses in our street worth more based on the above, historic sales and the housing index.

Fd did not hear us and insisted on revaluation at £175 so sent in a valuer (this is his job title). Nice elderly chap. He was inside the house for less than 5 minutes and when we asked how he value so quickly, he reply that it is based on index, historic sales and general condition (which is of course better now as we renovated to the tune of 30k or so).

He came to the figure £170k which was not enough to get us the magical 65% figure, we dully handed the £5k we intended to pay in anyway and got the deal. Was the revaluation necessary?

I personally don't think so as the data was freely available anywhere. But I am sure being £175 lighter will make someone happy in FD (good bank by the way).

Two almost identical houses, one in fair condition and the second as good as ours were sold this year (Jan and March) for 180k and 190k respectively, just to show how big is the gap between what the market will pay to what the bank think the market will pay.

StuC75

Its one thing having a nearby house on at 150k, thats no indication of it selling though.

How much have you done in the house in the last 3 years to warrant such an increase?

Bought my house 2 years ago (with Ex) and presently have Transfer of Equity going through (and rate switch) and they have just valued it at what had paid for it. Lender used CountryWide I think...

fiffio99

We got house at the perfect time as they had just reduced thier asking price from 150k to 145k and we were able to proceed as not part of a chain so got it at a reduced rate as they were keen to move and had another sale fall through etc

Not done all that much apart from a tidy up and some new flooring etc and house is quite new.

so it sounds like I'll pay a valuation fee of around £150 and it depends on what he comes back with, he might come back with £150k or he might come back with £140k or somewhere in the middle I guess.