NatWest "Free standard valuation" (remortgage)

SplanK

Hi all,
Our 5 year fix has just come to an end with C&G (well... Lloyds now) and are looking for another 5 year fix, but NatWest on paper are offering a better deal compared to what Lloyds are offering.

However it all hinges on the valuation of the house as with what we have left and what I think the value of the house is worth puts us at 80% LTV.

LLoyds computer estimates the house price being 10k lower than what I was expecting, putting us at a disadvantage with the LTV and available rates. They seem less than willing to entertain discussing re-valuing the house - even if we paid!

Some people may shout at me for this, but we bought in 2008 for 125k, which I believe was under the market value at the time but the seller wanted a really quick sale, With the work we have done to the house (new kitchen, new bathroom, redecorated throughout, re-landscaped garden - bringing everything up from a low standard to a really good standard), I estimate that we have at least kept to that value. Comparing to other houses on the estate which have sold, I believe this value to be fair.

I have some savings in reserve which I am willing to throw at the mortgage to get us a more favourable rate, however we are talking 7k at most and don't want to chew too much savings up.

May main question however, Natwest offer a free valuation with some of their products, but I am unable to find anywhere the answer to the question "if we do not agree to move forward with the mortgage based on the valuation, does the valuation then become chargeable". I have a call back next week but what worried me was the fact that when I made the advisor apt, the person on the other end didn't know!

kingstreet

The valuation is free, even if you decide to pull out.

However, the free valuation may not include an internal inspection, unless it is specifically requested (advice from our BDM).

Watch out for NatWest's new £150 fee for not proceeding after an offer is issued, if you change your mind for some reason.

nidO

I'm in pretty much an identical situation as you but with Nationwide as our existing lender, we have fairly good grounds to believe our property for a remortgage is worth more than Nationwide's HPI says it should be pushing us into a better LTV bracket, but theyre unwilling to consider having the house revalued when switching to a new deal, even at our full cost.

So, Natwest is one of the alternatives we're considering and yes their valuation is free, however as kingstreet's mentioned they do have a £150 pull-out fee if you decide not to proceed after an offer has been made.

The only thing i'm not clear on with Natwest's process is whether there's any time between having the valuation done (and them telling you what it's been valued at) and them making an offer (so that you could potentially pull out at this stage, knowing the valuation but with no offer having been made) or whether once they've valued the house they'll simply make an offer at an interest rate relevant to the LTV based on their valuation - If the latter, then this £150 pull-out fee is effectively the cost to not proceed based on the valuation.

A £150 valuation fee is still markedly lower than most other providers charge, though.

SplanK

Thanks,
Will ensure I enquirer about any other "fee's" but your info has helped

Thanka

SplanK

Just a quick update to this.


We are still moving forward with Natwest. Had the valuation done of the house and they have down valued it by 5k leaving us with a higher LTV than we wanted (aiming for 80%). This valuation was more than the computer value Lloyds had suggested though.


Rather than going straight to offer, they gave us the initial headsup about the lower valuation and advised the underwriters were looking at the application, then they discussed with us options on moving forward, they explained they were happy to offer the full amount of loan we were after, but due to lower valuation, it had effected the LTV.


Thankfully, we have this 5k shortfall in savings so I have paid off a lump sum to the existing lender (decision made that we have more than enough in savings to cover out of work scenarios, and savings are not gaining enough interest so makes sound sense to throw this money to the lender), and agreed a lower loan with Natwest. They gave me multiple opportunities to exit the deal (so avoiding the £150 exit fee) before they make an official loan offer.


So we got what we wanted and so far, a painless process so far!