Valuation when just changing product

copperclock

Sorry. I have googled this and called our mortgage lender but the answers seem vague.

I wondered if anyone knew if you could get a new valuation when simply switching mortgage product with the same provider, not remortgaging?

We think that we might have got a bargain when we bought our house a year ago. We bought it in a private sale from an acquaintance who was desperate to sell. But when we come to switch products in a year (I know I am thinking about this too early :rotfl:) won't Nationwide just add a certain amount to the price we paid for it?

Whereas, if they do another valuation, it might mean that we can fall into a lower LTV bracket and get a better deal.

Is getting another valuation for a product switch something that people do? If so what is the process? Or, alternatively, might Nationwide have valued the property at a higher figure than we originally paid when we took out the mortgage originally?

Thanks in advance!

lfc321

You're right that normally Nationwide will just use their house price increase calculator to work out a % increase in value from what you originally paid.
They may be willing to do a new valuation - call them and ask - but I'm sure you'll be expected to pay for it. You could also contract a valuer to do it yourself.

copperclock

lfc321 wrote: »

You're right that normally Nationwide will just use their house price increase calculator to work out a % increase in value from what you originally paid.
They may be willing to do a new valuation - call them and ask - but I'm sure you'll be expected to pay for it. You could also contract a valuer to do it yourself.

Thank you. Yeah, we're fine with paying for it if there is a chance it could make a significant difference to the LTV and therefore interest rate.

Do you know if Nationwide would have valued the property at more than the price we paid when we bought it, or would it have been a tick-box exercise? It wasn't a drive-by valuation.

bertiewhite

When you say switch products as opposed to remortgage - I was a customer with Virginmoney and had come to the end of a fixed rate so I rang up and to see if they could put me on to a better rate. They had the house re-valued as part of this process and they paid for the valuation. I don't know if this helps?

copperclock

bertiewhite wrote: »

When you say switch products as opposed to remortgage - I was a customer with Virginmoney and had come to the end of a fixed rate so I rang up and to see if they could put me on to a better rate. They had the house re-valued as part of this process and they paid for the valuation. I don't know if this helps?

Oh ok, that's interesting. It's my understanding, though, that the 'normal' way to switch products with Nationwide specifically is through and online process that just goes straight through and doesn't require any further valuations. As lfc says above, they just use their house price calculator.

lfc321

copperclock wrote: »

Do you know if Nationwide would have valued the property at more than the price we paid when we bought it, or would it have been a tick-box exercise? It wasn't a drive-by valuation.

Nationwide will have valued it at whatever the valuer at that time said (you should have got that info too). Very often valuers just agree with the price being paid even if they think it could be worth more. But occasionally they will say it is worth more than the price being paid.

lfc321

copperclock wrote: »

Oh ok, that's interesting. It's my understanding, though, that the 'normal' way to switch products with Nationwide specifically is through and online process that just goes straight through and doesn't require any further valuations. As lfc says above, they just use their house price calculator.

Yes that's right - a Nationwide product switch can all be done online in a few minutes with no new valuation - at least in normal circs. (Probably a different story if you're in arrears or if their calculator suggests negative equity or anything more complex).

armchaireconomist

From my knowledge, they provide a "basic valuation", which as you say I presume is simply a case of paid £X in Y year, average price rose Z% so this is new valuation.


Virgin did tell me that you can purchase a full valuation, at your own cost, from their own approved providers. I plan on this, as I bought my house at a 25% markdown on surrounding properties and spent some time renovating it so now I should have a significantly lower LTV.

copperclock

armchaireconomist wrote: »

From my knowledge, they provide a "basic valuation", which as you say I presume is simply a case of paid £X in Y year, average price rose Z% so this is new valuation.


Virgin did tell me that you can purchase a full valuation, at your own cost, from their own approved providers. I plan on this, as I bought my house at a 25% markdown on surrounding properties and spent some time renovating it so now I should have a significantly lower LTV.

Thanks. Yes, that sounds like a good idea in your case.

I just called Nationwide again. I was passed from one department to the other quite a bit, but the answer seemed to be that they would consider another valuation in the case of home improvements. That doesn't apply to us. We just feel that we got it at a bargain compared to the other houses and compared to what the sellers paid for it a couple of years prior, but maybe we're incorrect about that. I guess we'll just have to see what the market does in the next year and assess our options then.

ThePants999

bertiewhite wrote: »

When you say switch products as opposed to remortgage - I was a customer with Virginmoney and had come to the end of a fixed rate so I rang up and to see if they could put me on to a better rate. They had the house re-valued as part of this process and they paid for the valuation. I don't know if this helps?

Just to add another data point to this - I was in the same situation (end of fixed rate with Virgin, took customer retention product), and I told them I thought it was worth £X now (in order to get lower LTV), and they accepted that without getting another valuation.

copperclock

ThePants999 wrote: »

Just to add another data point to this - I was in the same situation (end of fixed rate with Virgin, took customer retention product), and I told them I thought it was worth £X now (in order to get lower LTV), and they accepted that without getting another valuation.

Oh, that's interesting. Thank you.

I've just found out that a house down the road was recently sold for over £100k more than our house. That one is detached, whereas we're end-terraced, and they have a slightly larger plot, but apart from that the houses are identical. In fact ours might be slightly bigger. Obviously there's will be worth more, but I shouldn't think £100k more, so that bodes well.