House valuation is a stumbling block

jadecinema

We tried to remortgage our house last November. It's currently only in my name as I was single when I bought it over 11 years ago. I've since got married.
I've got a few credit issues on my file - 2 defaults - one registered over 3 years ago and one registered 2 years 7 months ago.
We've had issues getting the remortgage because of these as no high street lender will touch us so I spoke to a mortgage broker at L&C last November. He found us someone that would lend us the money. I owe £34k on the existing mortgage but wanted to borrow £50k in all. He got all our bank statements, wage slips, etc and submitted them.
The mortgage company rang him up and said their minimum property valuation was £90k and we estimated our property to be about £70k (the last house sold on the street went for £72k).
So that fell through but he found another lender but their minimum valuation was £75k. He said we could pay the £370 valuation fee and hope the valuer gave a figure of at least £75k but if it didn't we would lose the valuation fee and the application would not proceed.
I don't know of any 2 bedroom terraced houses that would be valued of at least £75k in this area (Barnsley).
Am I best continuing to look around for a deal or wait until May when the other default will have been registered 3 years ago?

Thanks

Carl

ACG

Most people tend to have a good idea of the property value or think its higher than it is.

If you do not believe its worth £75k then it seems pointless in throwing £370 at an application you think will fall short.

If you are struggling and a broker is then I think I would probably wait. Its only 5 months off.

amnblog

This broker has made a poor job of this.


If your objective is to raise £16,000 there should be options out there.


Engage a new broker.

jadecinema

It may be valued at £75k but I'm betting it will be just under. We will wait 5 months as it may open the doors to more lenders as most won't touch me unless the defaults are 3 years old

amnblog

Is the objective to raise the extra funds?

jadecinema

It's funny because if we decided to move, we'd not have problems obtaining a £120k mortgage according to the broker. It's the low value of housing in the area that let us down

jadecinema

The objective was to raise funds for a new boiler, bathroom and kitchen. We wanted to get these things done to hopefully last us the remaining 14 years of the mortgage.

jadecinema

The kitchen is small and we don't have a dining room. The current kitchen was decorated 8 years ago and new cupboard doors put on. The existing cupboards and layout must be 20 years old (it was done before I bought it 11 years ago). We have a 3 year old son and primarily wanted to adapt the house to suit our needs instead of moving. The plans for the new kitchen give us the same amount of storage but with more floor space to put a table in. The same situation applies to the bathroom. But there's no point in doing those unless we replace our old back boiler at the same time as everything would need to be integrated to save ripping walks up for new radiators etc

amnblog

If I was handling this I would get a fix on the value of the property initially without cost to the client - this is because having a valuation of £75,000 is key to opening up options.


Risking £370 is crazy.

ACG

If your main aim is to raise funds im sure there is an answer. As amn says, it might be worth speaking to another broker.

Thrugelmir

jadecinema wrote: »

as most won't touch me unless the defaults are 3 years old

When were the defaults settled ?