Any idea how lenders value property?

carolineb23

Hi,
Our fixed rate (4.69% with Northern rock) ends in October so we are having a look around now as I know we are going to experience a big jump in payments. The problem is, we are right on the border of 90%/95% mortgage, and obviously we are going to get better rates on the 90% mortgage, so the valuation the new lender will make is very important.
Does anyone know how the lenders value the properties? We bought in Sept 2006 for 124500, I think that was quite a good price at the time as the house was up for 128000 so I'm a bit confused as to what its value is?
Can anyone help?
Thanks,
Caroline.

_Andy_

They mainly use 'comparables' i.e. prices similar houses have sold at recently. You can have a look on websites like Rightmove, net houseprices, etc. to see what these might be.
Also you could get a local estate agent around to get an opinion (although this will probably be a little more inflated than what a surveyor/valuer would say).

carolineb23

Thanks Andy, unfortunately there was a house sold in Feb this year for just 120k (I don't know why it was so low, there are others up for 130-138 in the street)I just hope this doesn't go against us.

_Andy_

Maybe get an EA out on the premise that you're thinking of selling, try and find out from them what they think you would actually achieve. Also ask them if they've sold any similar.

jonathon_hart

Hi.

I've had a similar situation recently being on the boundary between 2 rates and also having one near ours that sold cheaply. I would agree with what's been said above about finiding out the values of sold/ selling houses.

Is the house that sold exactly the same design as yours? In our case it was slightly different (and smaller) so got round it on that.

We also dropped into the chat with the valuer what we hoped for/ wanted and coincidentally the house was valued at exactly that amount....

Jonathon

carolineb23

yeah next door sold for 133k and is identical except we have a garage and they don't. I'm not sure about the one which sold for 120k, it must be in a mess or something cos its the lowest priced sale for a long while.
Thanks for all your help

vlabla

Just a word of warning: I have exactly the same rate with NR and I thought that my deal is 2 years - ending at the end of October but when I looked at the papers it expires beginning of September - so it lasts 22 months. Better double check if you don't want to taste NR SVR...

otb666

a house identical to ours-in same street- up for sale at 250k but the valuation for ours came in at 210k-we then couldnt get the 75%ltv rate and got the 90%ltv instead thus 5.79 instead of 5.49-costing extra 30 quid a month subsequently-still a good rate though

izoomzoom

Hiya

I think I am in the same boat - we bought latter half of 2006, and our mortgage will be finishing at the end of Sept.

I have looked at what houses have sold in our area in the last year, and there have been very few sales .... but what criteria do I look at when I try and compare, say Rightmove (ie house specs, or condition or what ????)

Thanks, in advance for any replies ...

Conrad

I'm finding almost every property is being valued less than the remortgaging owners anticipated.

Valuers do not have any interest in local properties that are merely 'on the market', instead they focus on actual selling prices NOW, not 6 months ago, as the market prices are declining each month.

In most cases my clients tell me there's is better than 'the one that sold over the road' but this is often not the case, as thier brains tend to disregard the benefits of the other property and inflate the supposed benefits of thier own property - this is I believe a natural Human trait well known to shrinks.