YBS mortgage valuation

Beckys86

Hi,

I was looking for a bit of advice please. I have held a mortgage with YBS since April 2008 and the fixed rate ended April 2013. When I tried to sign up to a new fixed deal YBS informed me that my property value had decreased by £10,000 in line with interest rates and I was therefore in negative equity. Having looked at various house price indexes my property should now be at the value it was when I purchased it but YBS are refusing to acknowledge this.

Is there anything I can do about this? Surely they have to recognise the rise in house prices as well as the drops.

Hope that makes sense and thanks in advance.

Becky

kingstreet

You can look at moving to a new lender if your current lender won't give you the option of paying for an internal inspection if you think the indexed valuation is incorrect.

Look here for the recent (last four months) sales of similar property in the vicinity (less than 0.5 miles) as these are the comparables a surveyor would use to determine your valuation;-

http://www.rightmove.co.uk/house-prices.html

Beckys86

Thanks for your reply. Moving to another lender isn't an option for us as we would probably fail the credit scoring owing to a few debts we currently have.

We paid for their surveyor to value the property but they did a drive by inspection which we feel was undervalued.

Even taking their surveyor's valuation into account, and using the HPI, our property value should have been increased.

So for now we're stuck and they say we cannot dispute their valuation.

Thrugelmir

Beckys86 wrote: »

When I tried to sign up to a new fixed deal YBS informed me that my property value had decreased by £10,000 in line with interest rates and I was therefore in negative equity.

Is your mortgage interest only?

lee111s

You can pay £70 for a new valuation to take place, as opposed tonthem going from a desktop valuation.

Beckys86

No, the mortgage is repayment. Sorry that should have read in accordance with the house price index and not interest rates.

I paid the £70 for the valuation so I'm reluctant to do it again. It just seems that they've changed the value of my property just before I am due to change deal and now im stuck.

lee111s

I was of the impression that the valuation was done by a surveyor who has no interest in what LTV bracket the house price would put you in.

If so, then that's what the surveyor believes your house to be worth.