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Valuation used by HtB equity loan repayment and remortgage

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Valuation used by HtB equity loan repayment and remortgage

edited 30 November -1 at 1:00AM in Mortgages & Endowments
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jaxkesajaxkesa Forumite
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edited 30 November -1 at 1:00AM in Mortgages & Endowments
I'm approaching the end of my second 2 year fix and am thinking of remortgaging to pay off the equity loan but I'm a bit confused about the valuation that would be used to calculate the amount of loan I need to repay.

There are several 3-4 year old new build flats in the same development as mine up for sale at or just under the original purchase price and only 1 has been sold in that period.

Other than those, there aren't any similar properties so would both a remortgage and HtB valuation be based on the value of the ones that are currently up for sale?

The possibility of a lower HtB valuation is one of the reasons I am considering remortgaging now.

When I first switched my Nationwide deal after 2 years, their automated valuation estimated the value up by 17% so I got a low LTV and 1.14% rate. It currently only estimates the value up by 6% but even still, nothing has sold for anywhere near that.

Replies

  • kingstreetkingstreet Forumite
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    You would need to arrange a valuation by a RICS surveyor and the lender would also have a RICS surveyor do the remortgage valuation.

    https://www.myfirsthome.org.uk/iwantto/redeem/

    They will both base their valuation on comparables, the recent (last four months) sales of similar property in the vicinity (upto 0.5 miles).

    Target will see only the valuation you arrange and not the lender's valuation for the remortgage.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • jaxkesajaxkesa Forumite
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    I've just had my HtB valuation done and it came back lower than I had expected (good for me in some ways). It's about 20k less than I originally paid for the property and 25k less than what Nationwide's automated valuation puts it at.

    I asked a Nationwide adviser if they would use their automated valuation or do a proper one if I borrowed more to pay off the loan and they said they would use my HtB one if I had one.

    Am I obliged to give tell them what it is? Obviously I don't want to give them a figure which is so much lower than their automated one. Wondering if I now need to speak to a broker properly about all this!
  • kingstreetkingstreet Forumite
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    What are Nationwide's additional borrowing rates like?

    You might find a better overall deal by remortgaging.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • jaxkesajaxkesa Forumite
    286 posts
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    I'm looking at 1.74% for a 2 year fix and £999 fee. I have seen some slightly lower fees with other providers but was hoping the process would be more straightforward if I stuck with Nationwide. Now I'm not sure if that's necessarily the case. The main thing I'm concerned about is that a lender's valuation will also come back at 20k less than what I paid which pushes my LTV up.
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