Nationwide Mortgage Valuation

benten69

Hi all, I have a fixed mortgage with Nationwide which is ending in a couple of months. Looking around they still have the best deals.

This morning I have went through their online switch and their new Offer has an estimated value lower than what I bought the house for 2 years ago.

Now I can kind of understand that, as with the Oil slump the NE Scotland has been hit quite hard. However I have also spent thousands on a new drive, getting the back garden lock blocked, garage all done up, upgrading electrics, boiler, etc which will all add to the value of the house.

However, even if my house valuation were to be £10k over what I paid for it my available mortgage rates would be the same.

So should I just take this and accept it at a lower price or try to get them to up their valuation? As I'll be paying the same for the next 2 years either way, it wont affect anything that I can think of, but just wondering if it may affect something down the line?

Thanks

Thrugelmir

benten69 wrote: »

However I have also spent thousands on a new drive, getting the back garden lock blocked, garage all done up, upgrading electrics, boiler, etc which will all add to the value of the house.

Not all improvements add as much value as the amount spent. A nice drive, ultimately is just a drive. If prices in your locality aren't increasing due to the economy. Then the Nationwide will know the broader trend and value accordingly using their index.

benten69

Thanks, but my main question is should I even bother speaking with them? As even if they upped their valuation to £10k more than what I paid they mortgage rates they are offering me won't change.

Just wondering if I accept it as is now, will it have any bearing on a future remortgage with them?

Thrugelmir

You could pay for a valuation survey to be undertaken. Though only worth it if you believe that your property is worth significantly more. Look at the Land Registry to ascertain what similar properties have sold for. Rather than what properties are being marketed at currently.

sevenhills

You could see what percentage others are offering

https://www.moneysavingexpert.com/mortgages/best-buys/?page=results&pageNumber=1&mortgagetype=FIRST_TIME_BUYER&amountborrow=40%2C000&propertyworth=105%2C000&repayyears=20&producttype%5B%5D=FIXED&banks_filter=&providerFilter%5Bbank%5D%5B%5D=-1&building_societies_filter=&providerFilter%5Bbuilding_societies%5D%5B%5D=-1&productlength%5B%5D=5&productlength%5B%5D=10&productlength%5B%5D=-1

but will a low valuation affect your ability to change mortgage lenders?

benten69

Looking at what others in the area have sold for an average house prices in the area over the last 12 months it seems that based on the valuation when I bought it, Nationwides new estimate is fairly on-par.

I'm pretty sure the works I've done will add a good bit of value as the drive was not just done for cosmetics, but it was SERIOUSLY bad when I got it and falling to bits. However there is absolutely no point in me forking out for a valuation when it will not result in me getting a better mortgage offer based on the LTV that I will have.

As for looking at other lenders, already done that and even if I put in a higher LTV than what Nationwide are estimating everyone else is still more expensive.

Think I'll just go ahead with the switch and I suppose I can always get it valued in the future should I need to for any future re-mortgages where my LTV is borderline on getting a better deal or not.

At the moment a lower LTV won't make any difference, as I think I'm a good 10% off the next lower "banding", and any valuation I do won't bring it down by that much. If I was only 2% away or so then I may have paid for a valuation.