Re-mortgage valuation swindle?

bowlingo

Hi all,

I have 118,000 left on my Natwest mortgage

I was on a 5 year fixed 5.99% rate with natwest of which has a decreasing 5,4,3,2,1 % get out clause (5% year 5 down to 1% year 1)

So as of the 3rd November I am in the 1% bracket and to get off I will have to pay them the 1% which is £1180.00

The Natwest have various fixed rates at the moment of which the rates decrease significantly dependant on the loan to values i.e from memory a 90% LTV is almost a full % higher that an 80% LTV

Now when they asked what the value is on the phone I said easily 160K so they did a post code search for my postcode of which is BH11 and the guy came back saying the average house price for the BH11 post code is £139,000! This then puts me in the 90% LTV bracket and they say I have to give them another £240.00 for a valuation of which I would need to get it valued at £149,000 in order to get into the 80% LTV or £158,000 to get into the 75% LTV range.

At the moment I am paying £744.00 per month. If I give them £1180.00 to get off the mortgage and £240.00 valuation fee. although my mortgage will go down to £570.00 a month (2 years fixed no fee deal) I would have to offset the £1420.00 against this and would be better off by about £55.00 per month...

What I dont understand is how they have arrived at this £139,000 average valuation...im asuming they under value in order to get lots of people to pay for valuations?

I know an estate agent would put this at about £165,000 and as of the house prices sold prices im seeing on the net for the BH11 post code im seeing 200,000 +!

Anyone any ideas?

Thanks

ACG

Dont forget house prices have only been going up for the last couple of months.

There can be a delay between sale and the land registry being updated.

You have 2 options though, leave it and wait or pay for the valuation.

Thrugelmir

bowlingo wrote: »

I know an estate agent would put this at about £165,000

That's not necessarily what the property would realise if it had to be sold within a reasonable time frame.

A new valuation is the only way of being certain.

candyfliss

that does sound a bit harsh to me
we have recently changed mortgage product, due to coming to the end of a fixed term
we were given the option to revalue, but the mortgage company already had an estimated valued on their books, which was our purchase value with a local area value increase applied
it seems odd to just take the area average price, as this takes into no account the condition / size of the property in question!

bowlingo

candyfliss wrote: »

that does sound a bit harsh to me
we have recently changed mortgage product, due to coming to the end of a fixed term
we were given the option to revalue, but the mortgage company already had an estimated valued on their books, which was our purchase value with a local area value increase applied
it seems odd to just take the area average price, as this takes into no account the condition / size of the property in question!

Yes it does seem very odd i.e if I was in a mansion and surrounded by ex council flats or if i was in a 1 bed flat and surounded by mansions this is very inacurate.....

candyfliss

have you tried looking on Zoopla to get an idea of what they "should" be looking at?

mrginge

candyfliss wrote: »

have you tried looking on Zoopla to get an idea of a made up number that is plucked from the mind of a latvian baboon

Fixed for you.

bowlingo

At the moment I have only looked into swapping my mortgage product with Natwest as thats who I am already with....

What apart from paying the £1180 get out fee would i have to give a new mortgage provider? deposit etc?

bowlingo

candyfliss wrote: »

have you tried looking on Zoopla to get an idea of what they "should" be looking at?

http://www.zoopla.co.uk/house-prices/browse/bh11/

http://www.zoopla.co.uk/market/bh11/

Thrugelmir

candyfliss wrote: »

it seems odd to just take the area average price, as this takes into no account the condition / size of the property in question!

Hence why a physical valuation is required.

Dave_the_Ginger_Cat

Hardly a swindle here.

You can either:

• Accept the (free) valuation taking using price index data, averages etc. Lenders may be relatively conservative on this valuation, but it is a risk based decision for them, not a money making scheme for valuers.
• Pay for a more insightful view by a qualified professional

In my experience if you want a better service, you pay for it.