Under Valuation impacting LTV

Markcroberts

We currently have an end terrace property that is conservatively value well in excess of £250,000 by a local estate agent. Another local estate agent is marketing a similar terraced (not end terrace) property for offers in excess of £290,000 (a bit OTT). The problem I have is that our current lender's index says that our property is only valued at £231,000. UK House Prices index for terraced property in our area is £240,000 and semi-detached £284,000. We are looking to re-new borrowing of £143,500, but on a valuation of £231,000, guess what it is not quite 60% LTV and therefore the interest rate is higher! Of course I can pay for their valuer to go out and revalue the property at a cost to me of £248 (or £352 if we believe the property to be worth more than £250,000). Zoopla has neighbouring terrace properties in excess of £240k, but our end of terrace seems to be only £238,000 (have contacted Zoopla about this). This valuation business seems a bit of a rip off to me,as I doubt anyone will actually go out and visit the property, but will do just what I have done, look on line! Still a couple of months until we need to remortgage, so there is still the possibility the lender's index will catch up and I am looking at other deals in the meantime.

[Deleted User]

Markcroberts wrote: »

Zoopla has neighbouring terrace properties in excess of £240k, but our end of terrace seems to be only £238,000 (have contacted Zoopla about this).

What Zoopla thinks about anything is entirely irrelevant.

DSW25

My 2 year fixed rate is expiring in October therefore I phoned HSBC a few weeks ago to talk about my choices, my LTV was 77%, and I found a 80% LTV mortgage that I was happy with. I was told to avoid the early repayment charges to wait until I enter the 90 day period before the expiry date of the fixed term. This period started this week and the mortgage I wanted it still available, however, when I phoned them up today the LTV of my property has jumped to 85%!!! That means the value of my property (which for info is a new build, 2 years ago) has dropped £30,000 in 2 weeks!! I asked them to carry out their 'desktop valuation', they said it would not bring up any results and the next step would to be get a valuer out at a cost! I am raging about this and I am considering leaving HSBC after 20 years of being a loyal customer.

Any suggestions? Are they allowed to do such a dramatic change, I find it very convenient for them to do this just when I enter the re-mortgage phase...

kingstreet

Markcroberts wrote: »

We currently have an end terrace property that is conservatively value well in excess of £250,000 by a local estate agent. Another local estate agent is marketing a similar terraced (not end terrace) property for offers in excess of £290,000 (a bit OTT). The problem I have is that our current lender's index says that our property is only valued at £231,000. UK House Prices index for terraced property in our area is £240,000 and semi-detached £284,000. We are looking to re-new borrowing of £143,500, but on a valuation of £231,000, guess what it is not quite 60% LTV and therefore the interest rate is higher! Of course I can pay for their valuer to go out and revalue the property at a cost to me of £248 (or £352 if we believe the property to be worth more than £250,000). Zoopla has neighbouring terrace properties in excess of £240k, but our end of terrace seems to be only £238,000 (have contacted Zoopla about this). This valuation business seems a bit of a rip off to me,as I doubt anyone will actually go out and visit the property, but will do just what I have done, look on line! Still a couple of months until we need to remortgage, so there is still the possibility the lender's index will catch up and I am looking at other deals in the meantime.

Pay £20 for HomeTrack?

https://www.hometrack.com/uk/products/market-intelligence/property-valuation-report/

OneInTheHat

thanks for that hometrack website - that is very interesting. Funnily enough it values my property around the value I think it is (and the estate agents agree - given I've lived there for about 13 years, I know the market pretty well and I'd say it was right) but it values the house I want to buy lower than the offer I have put in. Will be interested to hear what the bank's valuation is.