Property valuation for remortgage

essex.cyclist

Hi all


Related to my recent question.


If I am remortgaging (picking a new deal) with my current mortgage supplier at the end of a fixed deal, will they take into account the latest property value?


They note on their web site:


"As an existing mortgage customer, we don't do a credit search, you don't normally need a property valuation, there are no legal fees and you don't need to change your Direct Debit."


However, I need them to take the increase in property value as it tips me into a new set of mortgage offers.


So does the above mean that they will take my valuation, or does it mean they will continue to use the valuation that they have i.e. the buying price?


Thanks!

RhysHSCC

Hi Essex cyclist

With a retention product, the lender will usually have what is called an index valuation. This is based on information supplied quarterly by Halifax and nationwide to all lenders. I believe it works out an average house price within a mile radius of yours (please correct if I'm wrong, this is what I have been told) so it is not 100% accurate.

If it affects your ltv in a negative way e.g it's valued that the LTV is 68 when really it should be 59, this may mean your missing out on a better deal so it may be worth challenging if you believe it's valued higher then the index val. If so they will likely carry out a real time valuation to get a true reflection on value

A word of caution though, the lender I work for days that if the real time valuation comes back lower then index, they will always go with real time val. This could mean that the deal could be worse so it's worth checking this.

essex.cyclist

That's really helpful, thank you.


To be honest, any valuation should now be comfortably over what we need. There are properties near me on the market for way above what we'd give as a valuation.

RhysHSCC

Depending on what the mortgage amount compared to what you think, I would always double check just in case you fall into next LTV threshold below.

Most lenders as low as 60%ltv so if it's already around 30% for example there's nothing to worry about, but if you are hovering around a threshold banding, you may as well check as it could be the difference between a saving or not

essex.cyclist

RhysHSCC wrote: »

Hi Essex cyclist

With a retention product, the lender will usually have what is called an index valuation. This is based on information supplied quarterly by Halifax and nationwide to all lenders. I believe it works out an average house price within a mile radius of yours (please correct if I'm wrong, this is what I have been told) so it is not 100% accurate.

If it affects your ltv in a negative way e.g it's valued that the LTV is 68 when really it should be 59, this may mean your missing out on a better deal so it may be worth challenging if you believe it's valued higher then the index val. If so they will likely carry out a real time valuation to get a true reflection on value

A word of caution though, the lender I work for days that if the real time valuation comes back lower then index, they will always go with real time val. This could mean that the deal could be worse so it's worth checking this.

Just one quick query.


Is there a web site that is reliable for looking at price changes?


I have found the Land Registry price change calculator. Is that likely to be any good?


Thanks!

kingstreet

Phone your lender and ask if has your indexed valuation on file. Some lenders log it on their system automatically.

DFB35

We have recently applied for a remortgage and the value I initially gave my bank I found on Zoopla house proces.

Bank then ran their own figures and in the end they were pretty close to the value on zoopla

essex.cyclist

kingstreet wrote: »

Phone your lender and ask if has your indexed valuation on file. Some lenders log it on their system automatically.

They did!


Thank you so much.