Current lender undervaluing house effecting their renewal offer

dn852k4

We're at the stage where barclays will allow us to switch our rate and lock it it before our fixed rate ends. This is our first time remortgaging so we're a bit wet behind the ears and looking for info/advice please. 

I was speaking to them online and they say the current value of our house is lower than when we bought it (0.9%) however there's a similar house for sale on the same estate. This house  doesn't have a driveway or conservatory, plus it has a smaller garden. It is up for sale at 8.2% more than what we purchased our house at. I've explained this to barclays but they say they'll only revalue the house if square footage is added to the house.

I believe our house would be valued more than the other house for sale and this should put us in a lower loan to value category opening up lower interest rates? 

Is it worth getting my house valued by an estate agent? Would that value be accepted by another lender? 

At the moment I'm thinking of a 1 or 2 year fix, staying with barclays would save on quite a few fees I believe? Solicitors, revaluation fees and product fee? Have I missed anything out?

Cheers, 

Dan

BoGoF

What the other house is up for sale is irrelevant - it could be 20% more, it doesn't mean they will get that amount.

If you wanted to take it any further you would not get a proper valuation from a RICS approved surveyor (not an estate agent) but even then if Barclays stance is the won't revalue then your only option is to look elsewhere and you may incur additional fees. 

Why are you so desperate to lock in a rate when they are currently falling and there is a bit of a price was out there?

elsien

What the other house is up for sale for is not necessarily relevant as it may be hugely overpriced and might not sell.
have any other similar houses come up for sale lately and have you checked the sold prices?

MattMattMattUK

dn852k4 said:

We're at the stage where barclays will allow us to switch our rate and lock it it before our fixed rate ends. This is our first time remortgaging so we're a bit wet behind the ears and looking for info/advice please. 

I was speaking to them online and they say the current value of our house is lower than when we bought it (0.9%) however there's a similar house for sale on the same estate. This house  doesn't have a driveway or conservatory, plus it has a smaller garden. It is up for sale at 8.2% more than what we purchased our house at. I've explained this to barclays but they say they'll only revalue the house if square footage is added to the house.

Being up for sale does not mean it will sell, or sell at that price. House prices are falling and expected to continue to fall for most of the year, the bank are covering their behind. Why do you think it is impacting the remortgage offer, are you right on the edge of the LTV threshold? 

dn852k4 said:

I believe our house would be valued more than the other house for sale and this should put us in a lower loan to value category opening up lower interest rates? 

It does not matter what you believe, banks base their estimates on sold values and market trends.

dn852k4 said:

Is it worth getting my house valued by an estate agent? Would that value be accepted by another lender? 

No and No.

dn852k4 said:

At the moment I'm thinking of a 1 or 2 year fix, staying with barclays would save on quite a few fees I believe? Solicitors, revaluation fees and product fee? Have I missed anything out?

Speak to a broker, see what options they can give you. 

Mark_d

The other house on your estate might be advertised at 8.2% more than you paid for yours...but if it was worth that amount then it would be sold at that price.  It is common for sellers to advertise a property for more than they expect to sell for.

I would estimate my property value by looking at recent sales of similar properties, on Zoopla, and see what Zoopla estimates the current value of these properties to be.

Lenders tend to want their own valuation of the property.  This is sometimes just a computer-based valuation.  I don't think it would hurt to make a remortgage application to another lender you deem suitable - say HSBC.  If their valuation means that you don't want to remortgage with them, then you still have the option of staying with Barclays.

Staying with Barclays is easiest but I think you'd have to pay a product fee/booking fee for the fixed rate deal you choose to move on to.  Also, when remortgaging to another lender, it is common for that lender to pay solicitors fees and valuation fees as part of the deal.

ACG

They are using a computer that looks at recently sold (completed) prices and/or takes into account what has happened to house prices in your area in general. 

A house down the street up for 8% more means nothing, it could be 500% more it would not keep lowering your LTV. Even if they get an offer accepted today, it does not mean it will go on to complete. 

You have 2 options:
1) Accept what they are offering (although if you have time, rates do seem to be dropping so it could be worth holding off). 
2) Remortgage to a different lender and see what they can offer you and what they value the property at - it might be no better than what barclays are offering even if they value it higher. 

dunstonh

This is our first time remortgaging

Remortgaging means a new undewritten deal, typically with a new lender.   Your existing lender is offering you a product transfer.   That is not a remortgage.

however there's a similar house for sale on the same estate. This house  doesn't have a driveway or conservatory, plus it has a smaller garden. It is up for sale at 8.2% more than what we purchased our house at. I've explained this to barclays but they say they'll only revalue the house if square footage is added to the house.

So, if the estate agent is doing the typical, the house will be up for sale around 15% higher than the expected sale price.    Or the seller could be not worried about a quick sale and is happy to sit on a high price in the hope someone really wants it.   Estate agent prices are not used for valuations as they are not reflecting the value.

Is it worth getting my house valued by an estate agent? Would that value be accepted by another lender? 

No and no.

buttonmoon

If Barclays won’t look at revaluing or are not offering good product transfer rates then I would say it’s time to look elsewhere and remortgage if you think it would put you in a lower ltv bracket and/or a lower interest rate. 

I would check the land registry and see what similar properties nearby have sold for. 

I would speak to a good broker and see what they think. Often lenders will pay your legal fees to remortgage so the only cost as the valuation and the broker if you use one. I’m looking at using a broker as some of the most competitive rates on the market are £100 cheaper per month (with no product fee) than what my existing lender is offering me.