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My suggested valuation for remortgage was too *low*
tnpn
Posts: 4 Newbie
Hi all,
I'm just arranging to come off a 2 years fixed rate mortgage with pretty poor interest rate of 4.59%. Due to repayments and an additional lump sum I'm able to move from a 90%LTV to a 85% LTV for my next mortgage, which was always my target over the 2 year period, assuming the house price does not change.
My broker found me a mortgage for 2.19% at 85% LTV. For the my valuation of the house I just put down what I paid for it, just under £200K.
Sailed through the application process, needing to send only my proof of earnings and the offer was subject to valuation. Guy came to value the house yesterday and told me although he just provides the bank with a yes/no whether it's worth the value stated for the mortgage, he said that the valuation I'd given was very conservative and said the house could be worth 10% above that, if not more.
This is good news, which I kind of did expect. In my naivety, I thought at some point along the process the mortgage LTV I was going for could be adjusted based on the valuation. I'm now thinking I should have secured a marginally better interest rate by going for a 80% LTV, maybe in even 75%.
Not sure what to do now. I'll be saving nearly £250 a month with the new mortgage which is great but I could have knocked off a little extra, which will add up over 2 years.
Can I apply for a second mortgage while I had this offer, just to see if I can get a better rate?
What would you guys do? Thanks
I'm just arranging to come off a 2 years fixed rate mortgage with pretty poor interest rate of 4.59%. Due to repayments and an additional lump sum I'm able to move from a 90%LTV to a 85% LTV for my next mortgage, which was always my target over the 2 year period, assuming the house price does not change.
My broker found me a mortgage for 2.19% at 85% LTV. For the my valuation of the house I just put down what I paid for it, just under £200K.
Sailed through the application process, needing to send only my proof of earnings and the offer was subject to valuation. Guy came to value the house yesterday and told me although he just provides the bank with a yes/no whether it's worth the value stated for the mortgage, he said that the valuation I'd given was very conservative and said the house could be worth 10% above that, if not more.
This is good news, which I kind of did expect. In my naivety, I thought at some point along the process the mortgage LTV I was going for could be adjusted based on the valuation. I'm now thinking I should have secured a marginally better interest rate by going for a 80% LTV, maybe in even 75%.
Not sure what to do now. I'll be saving nearly £250 a month with the new mortgage which is great but I could have knocked off a little extra, which will add up over 2 years.
Can I apply for a second mortgage while I had this offer, just to see if I can get a better rate?
What would you guys do? Thanks
0
Comments
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said the house could be worth 10% above that, if not more.
Could being the operative word. The valuer works on the instructions of the lender. So doesn't mean that this higher value would be acceptable for remortgage purposes. As you could be waiting a while for someone to offer that amount. Whereas a lender would be looking for a quick disposal.0 -
Ask your broker.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I will but there's one of them and lots of you. Just asking for any other experiences of this situations and options.0
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Only your own broker knows the full detail of your case.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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