Remortgage - low valuation

ickleideas

Hi,

We are in the process of remortgaging to save on our current rate which has deferred to the SVR.

We've found a mortgage that we are in the process of looking to move to but the valuation that the bank has carried out has come back with a valuation that is less than the current provider values the property at by a considerable amount (over 10 grand).

Our property is unusual in that we are in a block of 8 houses but whilst ours and next door are semidetached the others are terraced properties. We also have a drive for two cars, a garage and a substantial garden with room to extend up to a third of the house again whilst the other properties have on street parking and small yards/gardens to the rear.

Despite this a 'drive by' 'remote' valuation has been carried out and I can only imagine potentially used software to compare recent property sales on the street to get the valuation which is not comparable to our property/situation.

I know that it is quite hard to contest the valuations. My question is this, if we were to go with the 2 year fixed rate they are offering even on this valuation that we don't agree with, would it affect the valuation of our property/future mortgage deals in a couple of years time.

Also, would we better to walk away from this offer and go to another lender?

Our only issue then is that we are looking to take out the remortgage with a bank in the same group as the current lender so would this valuation supersede anything currently on file?

Apologies for all the questions but slightly confused now as to what we can/should look to do.

Thanks in advance.

tom2205

You can challenge the valuation. The lender would want to see comparable evidence of properties in the local area that are similar to yours at the amount that you believe it should be valued at.

If you accepted the offer at the lower amount then it could possibly alter the loan to value bracket you are in dependent on your mortgage amount but in relation to 2 years later, the value currently would have no bearing on how it is valued then.

Personally, I would discuss the valuation with the lender and see if they are willing to instruct a formal valuation with a surveyor from the area who knows the property. If not then challenge and send some comparable evidence about local properties that are equal to the value that you originally applied at.

Has the product you originally applied for changed due to the lower valuation?

strawberries1

Have you tried getting a reduction from the seller based on the valuation?

ickleideas

Thanks for your reply, Tom2205

The product offered has changed slightly as a result of the valuation but not too drastically, we are also looking at other lenders as well. However, it was the low valuation that we were more concerned with and the impact that this may have if we fixed for the two years.

Good to understand what we can and should look to do, thanks again.

getmore4less

what was wrong with the retention deals from the current lender?

ickleideas

Hi,

The retention deals from current lender are not as good as the ones that we can get from the other lender from the same banking group unfortunately.

The concern is regarding the detrimental impact that the low valuation could potentially have going forward in the next two years if we were to accept the deal.

Would this valuation have any bearing on future decisions?

Thanks.

glentoran99

zero bearing

ickleideas

Ah great thanks, if it will have no bearing then we may as well go ahead regardless.

Think may have been getting too caught in mortgage valuation vs property valuation maybe?

glentoran99

ickleideas wrote: »

Ah great thanks, if it will have no bearing then we may as well go ahead regardless.

Think may have been getting too caught in mortgage valuation vs property valuation maybe?

any future mortgage company will do their own valuation, just as you are finding out now,