Frustrating time with a "simple" remortgage

skinners14

Bank send us letter to say mortgage deal coming to an end and to go online choose a new deal it's as simple as that - NOT!! Wouldn't let us do it so had to phone and unfortunately spoke to most unhelpful people you could imagine. We have been with current bank lender for years and are exemplary customers but was told they would be working out new deal on 2010 valuation of our house....explained that current approx. valuation would be 75 to 100k more.....oh in that case then we will have to pay £350.00 for new valuation.....said I objected to paying such a large amount...they say ok will get a "desk top" valuation done....they call back next day to say can't do "desk top" but wouldn't tell me why.....so therefore to cut a very long story short they will use unless we pay £350.00 they will work out mortgage on LTV of 75% although according to their figures it is 72% (on 2010 valuation) but they work in 5% margins....our current LTV in our opinion is 61% at very least. We are not asking to borrow more or even change the terms just the same mortgage with a different rate...the difference in cost to us, over 5 years, would be a minimum of £5k but probably a lot more as this is working on LTV of 70% and not 61%. Anyone else had the same problem. To me it seems like blackmail i.e. pay the £350 or you are not having the lower rate? Anyone else experienced the same or similar problems and how did you resolve it? Many thanks.

ACG

Look at this from the lenders view - you could be telling them some pork pies.

Im not saying you are, but you have to appreciate that some chancers would. So your option is to stick with the LTV and pick a product, pay the £350 and pick a different product or switch lender (or stay on the SVR).

Sorry to be blunt but its clearly not blackmail. You have options, the choice is yours.

kingstreet

If you need to have the property inspected to get the valuation you want, you appear to have little choice but to pay the fee. Just as you would if you were purchasing the property.

The alternative is to remortgage (not get a customer retention product from your current lender, which is what you actually are doing) to a new lender and look for a deal with a free valuation and free legals.

You may find it cheaper and more cost effective to move to a new lender.

skinners14

Thank you, but the Bank do have the tools to check the value of my property......I worked for this Bank for 20 years......in my opinion it is win win for them, (no customer service) either pay the higher monthly payments or pay the new valuation....I thought in the new world of banking the customer can expect to be treated fairly? The way the Bank's are implementing these fees will probably turn out to be the new "PPI" of the future.....Thanks anyway.

Thrugelmir

skinners14 wrote: »

To me it seems like blackmail i.e. pay the £350 or you are not having the lower rate?

You are of the opinion that your property has increased greatly value. I as the lender will have absolutely no idea as to it's state, condition or current value. Therefore to offer you a certain product I need to verify your statement. To do this I employ an outside professional. For which you quite rightly pay the cost as it's at your instigation.

Where's the blackmail?

ACG

PPI was miss sold in certain circumstances - not known, added to the mortgage, no need.

These fees are not sold nor added to the mortgage. Your fully aware of it and if you want to get into a lower LTV then you need the valuation.

I appreciate your annoyed - for whatever reason but spouting nonsense doesnt really help.

The options are above, you might not like them but those are your options. If your annoyed with your lenders policy, speak with your feet and find a new lender. As kingstreet says you may even find you save money.

skinners14

Thank you again for your reply but.....again I reiterate why say they will do a desktop valuation, then say they won't, then want to charge me £350.00.....you are in mortgage industry and you know they can put a different valuation on the property it isn't a
difficult task and the property is only 15 years old in a small road of more expensive properties? I do understand what you are saying, but I think the bank are not treating me in a fair way especially as a long standing customer. Tell me is everything done by script these days when dealing with Banks and other lenders? Thank you for your help your comments are appreciated.

kingstreet

Why don't you spend £20 on HomeTrack yourself and see if the valuation you get is the one you want?

http://www.hometrack.co.uk/our-services/analytics-reports/property-valuation-report

The inspection may be the only way to get the valuation you think you should have, unless you remortgage to a new lender and get a free inspection, as I suggested?

ACG

Maybe they tried to do desktop and it came back with no result?

skinners14 wrote: »

the property is only 15 years old in a small road of more expensive properties

Precisely the reason why a desktop val may not work. A desktop valuation is based on various things but one of the things may be the postcode. So when doing a desktop val and possibly looking on google maps yours stands out as not fitting the valuation being given?

If my lender did a desktop valuation on my house it would be miles out. When my deal comes up for renewal in september I will have to pay for a revaluation. Thankfully my fee will be £70 but im stuck with my lender because I only have 1 years accounts and cant get anything better elsewhere.

Thrugelmir

skinners14 wrote: »

I think the bank are not treating me in a fair way especially as a long standing customer.

This has nothing to do with the value of your property. As a customer if you don't like the operating policy of the lender then remortgage elsewhere. As there's no reason for you to receive different treatment to anyone else.

regprentice

Desktop valuation could be skewed by a number of different factors.

I live in an excouncil semi. Paid the going rate on the open market. However almost all other recent purchases in my street were tenants right to buy purchases at less than 50% mkt value. Plays havoc with the averages in the system and makes it look to the computer like my house is worth half what it actually is.