How does new valuation works

nirajn123

Hello,
We moved into our new home about 2 years ago and my initial mortgage deal is about to come to an end, I am keen to stay with Halifax - my current lender (as limited options for self employed contractor). Now, we were fortunate enough to buy at the right time and prices in the area have gone up good 20-30% and the current values on mouseprices.com or zoopla.com will allow me to go for 60% LTV - which means shaving a great deal on my monthly outgoings. So my question is -

1. How does the existing lender value properties if they say they don't do a formal valuation when switching to a new deal?
2. If this is based on certain % - how do I find that out upfront? These valuations are just on the edge of 60%LTV so I am keen on making sure that I get the best rate to state the obvious.

kingstreet

Halifax uses an indexed valuation.

Give them a ring and they'll tell you what it is.

nirajn123

Thank you kingstreet. I would think it is the Halifax House Price Index and a calculator is available on Lloyds Banking Group site - did a check and it matches with Mouseprices. :j

I have another month to go before I can apply so will call them at that time.

Mortgage_Mark_2

Halifax will let you switch product up to three months' early - I'd call earlier if I were you.

Even if their index linked valuation differs, you can pay for a revaluation if needed.

nirajn123

Thanks Mark, I think I'll be in 3 months in 2 days, so no time to waste - will give them a ring - possible savings of £££

nirajn123

I did made enquiries few months ago, and the branch staff told it was 2 months, but I am sure being an advisor you know more than they do.

kingstreet

As MM said, if the indexed valuation isn't enough, you can pay £80ish for a drive-by, or £130ish for an internal.

If your property is more valuable because of stuff you've done to it, rather than just market increases, it may be worth the investment.

BTW, the indexed valuation is always visible on your account. Ring and ask for it now so you're in a position of knowledge.

nirajn123

Thank you. I checked my details and to my surprise the current term of (supposedly 2 years) run until 31-Dec, even though the mortgage started mid-September 2013. Any idea why the bank might have done that, and does that mean I can't switch until end of September?

We have done quite a bit of work (in the tune of £30K) to the property so I guess it make sense to get the internal valuation done.

kingstreet

Most lenders offer products with a fixed end-date, not a number of years from completion. Therefore a "two year fixed rate" may well currently be two years, fixed until 30/09/2017.

This is completely normal.

nirajn123

I'll have to wait another 3 month and hope situation improves further on prices and deals (or at least doesn't change).