Do valuers just agree with Remortgage Lenders Figure vs Open Market

IAMIAM

I bought a 2 bed semi in 2017, nice area, and every time I have remortgaged/switched rate I have always put in a figure that is always slightly higher than the screen which has triggered a physical valuation.

Every time, the valuer has just agreed. I ask, because I know full well if i put it onto the open market, I would get 30-40k less (based on local area) than what I keep valuing it at when rate switching....

Lender always HSBC/First Direct/Nationwide and always used Countrywide or L&G

Mark_d

No.  I used a figure of 500k when applying for a remortgage but the lenders offer came through using a value of 450k.   It didn't make a difference to the mortgage amount or interest rate though

IAMIAM

Interesting for sure. 

Tracet74

No, we have to complete a Market Valuation whether for a desktop or inspected valuation.

IAMIAM

Well I am surprised as I do not expect to get the valuation given but having said that I am happy enough its taken me to 60% LTV

silvercar

IAMIAM said:

I bought a 2 bed semi in 2017, nice area, and every time I have remortgaged/switched rate I have always put in a figure that is always slightly higher than the screen which has triggered a physical valuation.

Every time, the valuer has just agreed. I ask, because I know full well if i put it onto the open market, I would get 30-40k less (based on local area) than what I keep valuing it at when rate switching....

Lender always HSBC/First Direct/Nationwide and always used Countrywide or L&G

Why are you doing this? To get a lower LTV and therefore a lower mortgage rate? If that 30-40k is a relatively high percentage of the sale price, I think you risk bordering on fraud - obtaining a mortgage by deception. You are attempting to obtain a better mortgage deal by falsely inflating your property value. If your property is worth £1m then £40k is just 4% and small change, if your property is worth £200k then 40k is 20% and significant. If this was discovered your mortgage could be called in and a fraud marker put against your name.

lfc321

silvercar said:

IAMIAM said:

I bought a 2 bed semi in 2017, nice area, and every time I have remortgaged/switched rate I have always put in a figure that is always slightly higher than the screen which has triggered a physical valuation.

Every time, the valuer has just agreed. I ask, because I know full well if i put it onto the open market, I would get 30-40k less (based on local area) than what I keep valuing it at when rate switching....

Lender always HSBC/First Direct/Nationwide and always used Countrywide or L&G

Why are you doing this? To get a lower LTV and therefore a lower mortgage rate? If that 30-40k is a relatively high percentage of the sale price, I think you risk bordering on fraud - obtaining a mortgage by deception. You are attempting to obtain a better mortgage deal by falsely inflating your property value. If your property is worth £1m then £40k is just 4% and small change, if your property is worth £200k then 40k is 20% and significant. If this was discovered your mortgage could be called in and a fraud marker put against your name.

I don’t see how this could be considered fraud: OP is claiming a higher value than suggested by the lender’s database. In response, the lender commissions a valuation. If the valuer agrees with OP about the value and advises the lender accordingly, where is the fraud?

It certainly wouldn’t be worth doing this every time you change mortgage deal, as the OP seems to do. But in the case where it makes the difference between one LTV band and another, it could be worthwhile. 

ReadySteadyPop

IAMIAM said:

I bought a 2 bed semi in 2017, nice area, and every time I have remortgaged/switched rate I have always put in a figure that is always slightly higher than the screen which has triggered a physical valuation.

Every time, the valuer has just agreed. I ask, because I know full well if i put it onto the open market, I would get 30-40k less (based on local area) than what I keep valuing it at when rate switching....

Lender always HSBC/First Direct/Nationwide and always used Countrywide or L&G

You don`t really know how much the market will pay until you complete a sale.

Elliott.T123

silvercar said:

IAMIAM said:

I bought a 2 bed semi in 2017, nice area, and every time I have remortgaged/switched rate I have always put in a figure that is always slightly higher than the screen which has triggered a physical valuation.

Every time, the valuer has just agreed. I ask, because I know full well if i put it onto the open market, I would get 30-40k less (based on local area) than what I keep valuing it at when rate switching....

Lender always HSBC/First Direct/Nationwide and always used Countrywide or L&G

Why are you doing this? To get a lower LTV and therefore a lower mortgage rate? If that 30-40k is a relatively high percentage of the sale price, I think you risk bordering on fraud - obtaining a mortgage by deception. You are attempting to obtain a better mortgage deal by falsely inflating your property value. If your property is worth £1m then £40k is just 4% and small change, if your property is worth £200k then 40k is 20% and significant. If this was discovered your mortgage could be called in and a fraud marker put against your name.

Where is the fraud here. A professional has agreed they feel it is worth that value.

ReadySteadyPop

silvercar said:

IAMIAM said:

I bought a 2 bed semi in 2017, nice area, and every time I have remortgaged/switched rate I have always put in a figure that is always slightly higher than the screen which has triggered a physical valuation.

Every time, the valuer has just agreed. I ask, because I know full well if i put it onto the open market, I would get 30-40k less (based on local area) than what I keep valuing it at when rate switching....

Lender always HSBC/First Direct/Nationwide and always used Countrywide or L&G

Why are you doing this? To get a lower LTV and therefore a lower mortgage rate? If that 30-40k is a relatively high percentage of the sale price, I think you risk bordering on fraud - obtaining a mortgage by deception. You are attempting to obtain a better mortgage deal by falsely inflating your property value. If your property is worth £1m then £40k is just 4% and small change, if your property is worth £200k then 40k is 20% and significant. If this was discovered your mortgage could be called in and a fraud marker put against your name.

Any worse than stats from mortgage debt lenders that use asking prices to pretend that the market is better than it actually is?

shinytop

ReadySteadyPop said:

silvercar said:

IAMIAM said:

I bought a 2 bed semi in 2017, nice area, and every time I have remortgaged/switched rate I have always put in a figure that is always slightly higher than the screen which has triggered a physical valuation.

Every time, the valuer has just agreed. I ask, because I know full well if i put it onto the open market, I would get 30-40k less (based on local area) than what I keep valuing it at when rate switching....

Lender always HSBC/First Direct/Nationwide and always used Countrywide or L&G

Why are you doing this? To get a lower LTV and therefore a lower mortgage rate? If that 30-40k is a relatively high percentage of the sale price, I think you risk bordering on fraud - obtaining a mortgage by deception. You are attempting to obtain a better mortgage deal by falsely inflating your property value. If your property is worth £1m then £40k is just 4% and small change, if your property is worth £200k then 40k is 20% and significant. If this was discovered your mortgage could be called in and a fraud marker put against your name.

Any worse than stats from mortgage debt lenders that use asking prices to pretend that the market is better than it actually is?

Do they?  I always thought they (at least Halifax and Nationwide) used mortgage valuations, which would presumably be based on the selling price.  Do you have any links to major indices that use asking prices?