Product Change - devaluation

BarleyGB

Looking for some advice.

I made a £9000 capital repayment two years ago to reduce loan to value below 60% for lower interest rate.

Product is now about to expire, having enquired about my loan to value the lender advises 64%, apparently the property has reduced in value £15,000 (roughly 5%).

I know the local market well, its inconceivable that values have reduced, let alone 5%, this is supported by land registry sold prices.

How do I go about challenging the lender, other than paying for a valuation?

Could it be that lenders have an incentive to reduce valuations so clients are paying more interest in higher LTV bands?

I'm also interested whether ive any claim for a return of my capital if the lower rate benefit no longer exists.

foxy-stoat

You will have to pay for the valuation. Had this with my current property.

I doubt you can "claim" back the £9000 other as it has still reduced the starting capital by £9000. As you haven't sold the property for a loss you haven't lost anything.

Try another lender that gives free valuations.

BarleyGB

Update, the very helpful adviser at Santander has offered a free valuation in the next week.

Seems I jumped the gun. Good work Santander.

BarleyGB

Valuation came back as I estimated, new rate arranged on <60% ltv, 0.30% interest differential &#55357;&#56836;

mdori003

Glad to hear you got it sorted :T