Natwest not using Index for valuations for existing customers

Keezing

Hi All,

I took out a 2-year fix mortgage with Natwest around 2 years ago, and it stated on their web site at the time that once the fix has expired and I wished to switch rate with them, they will attempt to use an index for valuations. If I disagreed with the index valuation, I could pay for an internal valuation.

After speaking to Natwest today, they have now changed this policy and do not use an Index at all. Instead, they will retain the exact same valuation unless I pay £299 for a new valuation.

Something to bear in mind when considering taking out a mortgage with Natwest. If your property has increased in value and you want to benefit from a better LTV banding, you will either need to pay £299 or remortgage with a different lender (and probably pay a fee).

With Nationwide, for example, they use their own index for free revaluations, so I could have saved some money.

csgohan4

299 in the grand scheme of things may be drop and maybe the best course of action, rather than mouse price guessing. Although a drive by is what you may get also.

Keezing

Indeed.

But worth highlighting nonetheless. If you fall on hard times and can't afford the 300 quid upfront for a valuation, you'll either have to stick with their SVR until you can or lock yourself into an LTV band that doesn't reflect your property's true value.

I think in the grand scheme of things it's not an important factor when selecting your lender, but definitely a plus point for lenders like Nationwide and Halifax that allow you to switch deals with an automatic (and free) valuation.