Halifax and may be other banks too?
Options
dimwit.
Posts: 16 Forumite
Has anyone experienced this?
You take out a mortgage product or remortgage with say Halifax. They send out someone to value the property and it is valued more than you bought it by a small amount.
Fast forward a few years later, you want to move to a better product, but Halifax unilaterally have valued your home significantly lower than its previous or actual value now.
This then means that if you remain with them you remain on a more expensive product.
You take out a mortgage product or remortgage with say Halifax. They send out someone to value the property and it is valued more than you bought it by a small amount.
Fast forward a few years later, you want to move to a better product, but Halifax unilaterally have valued your home significantly lower than its previous or actual value now.
This then means that if you remain with them you remain on a more expensive product.
0
Comments
-
How long is 'a few years later'? Does it span the whole banking crisis?
We remortgaged recently and got quotes from Halifax (who Mrs L banks with), First Direct (who I bank with), plus a couple of others, and my experience is that they were all much more conservative about valuations now than during the boom - our average valuation was 13% lower than when we purchased in 2006, whereas land-registry recent sale prices suggest that the real market here is at or above 2006 levels (e.g. our old house, sold for £200k in 2006, just sold again for £240k). But personally I think the lower valuations are more about overlending during the boom - in 2006 we pretty much just needed a pulse and to write our name to get the mortgage we needed - and protecting the loan book now than a deliberate attempt to undervalue to force you on to a higher LTV and more expensive rate. Depends on how cynical you are about banks, I guess.£40k-in-’23#18 £78,628.29/40,000 (196.57%)0 -
Halifax were very generous in their valuation of our house. I needed the deal badly at the time but I did wonder the same thing myself.Mortgage Jan 13 99260.00 87253 April 2017
Emergency fund 700.000
This discussion has been closed.
Categories
- All Categories
- 343.5K Banking & Borrowing
- 250.2K Reduce Debt & Boost Income
- 449.9K Spending & Discounts
- 235.7K Work, Benefits & Business
- 608.6K Mortgages, Homes & Bills
- 173.2K Life & Family
- 248.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards