Nationwide re-mortgage - Valuer told me one thing, but Nationwide downgrade

pixel1985

Hi there,

I'm hoping someone can give me some advice.

My husband and I are re-mortgaging our flat with Nationwide (we're pre-existing mortgage customers), and requesting additional borrowing so that we can get a loft extention and also do some other internal works I.e. New kitchen.

We applied a few weeks ago, and were told that our flat was valued at around £307k by the consultant on the phone - less than we could sell for, but we were fine with this. They said a Valuer would be required to come round and this was arranged for two days later. When the Valuer came round, we were then again told that it was worth roughly £307k, maybe £100 less or so, but nothing significant from what we were told.by Nationwide. He said he would get the report off that day and we thought nothing more of it.

Flashforward three weeks later, and after a series of Nationwide incompetence and technical issues regarding payslips - we don't hear back from them for a week. We called the hotline yesterday to confirm all the payslips were OK, and to find out what the hold up is, only to be told that our flat has now been downvalued to £285k which would significantly reduce the additional borrowing we can do at minimum LTV%, and thus scupper our project. The guy on the phone couldn't find a direct number for our mortgage consultant, so had to email him to tell him to phone us - he also didn't have any more info on it. What we can't understand is how if the valuation was sent three weeks ago, why they would only flag this now, after spending ages sorting out our documents, especially as we were told the valuation by the guy that came round. My husband also thinks that the remortgage was already all confirmed as we've had a letter in the post confirming new payment dates and amounts, and that this was based on the Valuer, but I'm not sure that this is actually a confirmation, more a statement of what we applied for.

The questions we have are thus -

1) is Nationwide able to change the valuation given by the Valuer I.e. If it means our rates go up Etc? About an hour of our time on the phone was the consultant desperately trying to upsell us into increasing our monthly payments, so it's definitely in their interests to do so.

2) my husband thinks this is a simple clerical error which will be easily fixed - I'm a little more cynical... Is there any chance that they could realise this is an error and correct it? I've read that appeals are virtually pointless, and I don't see how Nationwide will correct this mistake when it will provide them with much greater revenue (much decreased LTV ratio on the remortgage).

At this stage, it seems to me that our only option is to cancel the whole re-mortgage and move to a new bank entirely, but I'm concerned about applying for another mortgage so close to the other one, for fear our credit ratings will be damaged.

Does anyone have any advice? Or has anything similar happened to anyone else?

Thank you,
P

kingstreet

What are the property's comparables?

Look for similar sold properties in the vicinity (less than 0.5 miles) sold in the lat four months.

The surveyor bases his valuation on these. Nationwide would have used an indexed valuation which is not particularly reliable.

ACG

What surveyors say to you and what they do can be very different.

If he/she told everyone the valuation they were going to give the property they would end up having debates/arguments about the value. It is easier for them to just nod and agree and move on to the next one. It is frustrating but that is what happens. Nationwide would not have reduced the value, they would take the surveyors word on it.

Thrugelmir

Pixel1985 wrote: »

When the Valuer came round, we were then again told that it was worth roughly £307k, maybe £100 less or so, but nothing significant from what we were told.

At that point in time hadn't actually formulated an opinion. To keep the peace and avoid getting into a debate. Merely agrees with you. The valuer isn't going to tell his instructions either as is employed by the NW.