How do banks value properties?

taylor86

I have just called Halifax and asked them what rates we can swap to, they have just told me they have my house value as £116,000. I presume this is what we bought it for + % of house price increases?? This value has surprised me as our house has been on the market for 115k this year and not sold.

It is good as we can get a slightly better rate if we fix in but not as good as if we went elsewhere.

If we did go elsewhere is it likely they would value to the same figure? Do banks always do an actual valuation or do they use the same method I presume halifax have done?

amnblog

Halifax have an indexed valuation on their system that they will use for the purposes of product transfers.

In your case £116,000 - shame they wont buy it off you.

Bear in mind that you may not want to be locking into a new rate if your intention is to sell.

Other lenders will make their own assessment which may be higher or lower, as your has not sold, probably lower.

taylor86

When you say 'their own assessment' is that usually a 'normal' valuation where they visit the property? If they do this and check out the co parables I'm certain their value would be lower so if I look to change bank I'm sure it will be a wasted effort!

amnblog

Could be a visit, but often done by computer.

Either way, if you cannot sell at £115,000 it is not under priced.

taylor86

If we make the decision to stay in this property for 2 years and go ahead with the remortgage I don't know whether to stay with halifax or remortgage with someone else for a much better rate.

As a mortgage advisor what would you do?! Is there a way to tell which lenders would use a similar valuation system?