bank overvalued house for remortgage

cup_of_tea_shaggy

Any advice appreciated....

We are switching our mortgage to get a better deal. I spent quite some time researching to find the best deal for us. We currently owe £186k on a house I believe is worth around 260k, giving an LTV of 72%. The mortgage i applied for a 5-year fix which has a max LTV of 75%. The application went through fine and I now have the mortgage offer - the question I have is that I've read the offer which values the house at 310k. Im confident this is overvalued so I've called and queried this and they are happy to stick with that valuation. However, based on a valuation of 310k, the LTV is 60%, which means I could have applied for a different mortgage with the same bank a rate around 0.2% lower.

Are there any risks in reapplying for the mortgage with a 60% max LTV? It would save us about £14 a month on top of what we are already saving by switching in the first place, however I'm concerned that if I do, the banks valuation might not stay at 310k and my application will be rejected. I should add that they didn't send a surveyor round, so I don't know how they arrived at that valuation.

Am I just being greedy trying to milk every last £ out of this? I was perfectly happy with the mortgage I applied for in the first place, so wouldn't even be an option if the bank hadn't overvalued the house.

Thanks in advance!

glosoli

Was it a full application you went through, or a self selection product switch?

If the valuation came at a higher amount, and the product is affected due to change in LTV, the mortgage adviser should contact you to discuss product, otherwise they may have recommended an incorrect product to you, which could get picked up at their companies quality checking stage. It may be worth dropping the adviser a quick email, you could save them a bit of hassle if they haven't noticed...

Lovin_It

Hi I was in same situation a couple of years ago, not realising how much the market had appreciated. For the sake of £14 I'd let sleeping dogs lie... If you do choose to try and change, make sure there's no early repayment charge to get out of the 75% LTV mortgage, obviously
What rate are you looking at, out of interest? Do they both revert to the same SVR?
I was looking at 5 year fix for my next deal, but early repayment is 5%,4%,3%,2%,1% for each year, which is a bit of a lock in (Halifax I'm describing).

cup_of_tea_shaggy

Thanks for your reply. It did require an application as i am switching providers, but i have done this myself all online/via phone with no financial advice from the bank (first direct). As such they haven't recommended anything to me so aren't at fault. They are offering me the exact product i applied for, its just that as their valuation is v high (around 50k over the mark in my opinion), i could technically have got a slightly lower rate due to the lower LTV.

cup_of_tea_shaggy

Lovin_It wrote: »

Hi I was in same situation a couple of years ago, not realising how much the market had appreciated. For the sake of £14 I'd let sleeping dogs lie... If you do choose to try and change, make sure there's no early repayment charge to get out of the 75% LTV mortgage, obviously
What rate are you looking at, out of interest? Do they both revert to the same SVR?
I was looking at 5 year fix for my next deal, but early repayment is 5%,4%,3%,2%,1% for each year, which is a bit of a lock in (Halifax I'm describing).

Hi, thanks for your message. Both the 75% and the 60% LTV versions revert to the same SVR, and with the same early repayment charges. We aren't looking at moving any time soon so this isn't a bit deal for us anyway. The 75% LTV is 2.34% for 5 years, the 60% version would be around 0.2% less (I don't have the exact rate to hand right now). I'm confident the banks valuation is too high, there are larger houses on our street which have very recently (Dec 2106) sold for less than the bank has valued ours at.

P.S I haven't signed anything yet, and they are both zero fee products, so I can choose not to progress the current 75% max LTV offer without charge. The question is, are there any risks in doing this, and is it even worth the hassle?

amnblog

You are dealing direct with the Bank so ask them.


I cannot see why it would be a problem.

getmore4less

if everything apart from LTV and rate are the same should be a simple

"I see my LTV is now at/under 60% can I have the lower rate please"

FD fee saver rates are 2.34% and 2.19%
on £186k over 5y
£1380 interest only
£1330 20y term

Asking could be a very good return on time invested.

cup_of_tea_shaggy

amnblog wrote: »

You are dealing direct with the Bank so ask them.


I cannot see why it would be a problem.

Unfortunately the bank won't give me any advice as I selected the product and applied myself. My options are to continue with the current application, or cancel it and reapply for the 60% LTV alternative.

cup_of_tea_shaggy

getmore4less wrote: »

if everything apart from LTV and rate are the same should be a simple

"I see my LTV is now at/under 60% can I have the lower rate please"

FD fee saver rates are 2.34% and 2.19%
on £186k over 5y
£1380 interest only
£1330 20y term

Asking could be a very good return on time invested.

I agree it is probably worth an ask! I suppose if nothing else it will give me an idea of how much hassle it would be (i.e if it would be a reapplication from scratch or not). Thanks

getmore4less

I found this while looking for osmthing else

Amend your existing online application

If you’ve recently applied for your first direct mortgage online and wish to make any amendments to your application, you’re able to change the following online:

loan amount
mortgage term
mortgage type (i.e. change from offset to repayment only)
interest rate (e.g. change from fixed, tracker or standard variable)
In order to make amendments, you’ll need to:

1. Use our ‘Find a mortgage for you’ tool to find the mortgage you would now wish to change to – remembering to select ‘Amending an existing application’ in the ‘I am..’ field.

2. Once you’ve selected the mortgage, you’ll then need to click on ‘Full details’, followed by ‘How to Apply’.

3. Then simply follow the on-screen instructions.

Please Note: You'll need to complete a new mortgage application if you want to make any other amendments to your online mortgage application or if your application was submitted over five months ago. If you do not wish to amend your interest rate, but cannot find the interest rate you originally applied for, please call us on 03 456 100 103

cup_of_tea_shaggy

getmore4less wrote: »

I found this while looking for osmthing else

Amend your existing online application

If you’ve recently applied for your first direct mortgage online and wish to make any amendments to your application, you’re able to change the following online:

loan amount
mortgage term
mortgage type (i.e. change from offset to repayment only)
interest rate (e.g. change from fixed, tracker or standard variable)
In order to make amendments, you’ll need to:

1. Use our ‘Find a mortgage for you’ tool to find the mortgage you would now wish to change to – remembering to select ‘Amending an existing application’ in the ‘I am..’ field.

2. Once you’ve selected the mortgage, you’ll then need to click on ‘Full details’, followed by ‘How to Apply’.

3. Then simply follow the on-screen instructions.

Please Note: You'll need to complete a new mortgage application if you want to make any other amendments to your online mortgage application or if your application was submitted over five months ago. If you do not wish to amend your interest rate, but cannot find the interest rate you originally applied for, please call us on 03 456 100 103

That's great thanks v much!,ill let you know the outcome