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Problems with LTV
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smitchy73
Posts: 2,558 Forumite
I’ve been going through a broker to try and get a new remortgage deal, also an issue with reverting part interest only to full repayment.
Started off going through the broker after getting a not very good offer from current lender(Halifax through Bank of Scotland), got a good rate with TSB and started the process, filled in the conveyancing online paperwork, arranged a valuation(theirs), got all that done, and it fell at the valuation.
The last one we had was about 10 years ago and valued at £95k, this one came back as £80k, we were looking for £72k but their deal was on a lower LTV and nothing available for the higher LTV.
Then the broker went to Nationwide, everything looked good, even based on the £80k valuation and a 90% LTV rate offer,, still a lot cheaper than our current lender, found out on Tuesday that this has fallen through too as the valuation has came in at £75k.
Our current lenders index linked valuation is over £110k.
I just don’t get it, or am I missing something?
Started off going through the broker after getting a not very good offer from current lender(Halifax through Bank of Scotland), got a good rate with TSB and started the process, filled in the conveyancing online paperwork, arranged a valuation(theirs), got all that done, and it fell at the valuation.
The last one we had was about 10 years ago and valued at £95k, this one came back as £80k, we were looking for £72k but their deal was on a lower LTV and nothing available for the higher LTV.
Then the broker went to Nationwide, everything looked good, even based on the £80k valuation and a 90% LTV rate offer,, still a lot cheaper than our current lender, found out on Tuesday that this has fallen through too as the valuation has came in at £75k.
Our current lenders index linked valuation is over £110k.
I just don’t get it, or am I missing something?
Thanks to all the competition posters.
0
Comments
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The index linked one is based on a computer.
If your home is not in a great condition or it is opposite/next to something not very desirable, that is affecting the property value when a person goes out.I am a Mortgage AdviserYou 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.0 -
I’m in a mid-terrace and all the homes look the same.Thanks to all the competition posters.0
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Was there any feedback on the valuation?
Without knowing more it is difficult to say. If 2 surveyors have gone out and valued it at relatively similar amounts give or take a third lower than the computer, that makes me think the computer is wrong. Sometimes that works in your favour but not always.
What has your broker said?I am a Mortgage AdviserYou 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.0 -
after getting a not very good offer from current lender Halifax
But you DID get an offer from Halifax based on their valuation of £110,000?
I would go with that if you must remortgage and sort out the interest only part....can you not work out how much you need to save to clear the interest only debt on the mortgage and make your own savings plan?0 -
Was there any feedback on the valuation?
Without knowing more it is difficult to say. If 2 surveyors have gone out and valued it at relatively similar amounts give or take a third lower than the computer, that makes me think the computer is wrong. Sometimes that works in your favour but not always.
What has your broker said?
No feedback on the valuation as it was the no fee, free legals etc, but it's their choice. Offered to get my own from a National Surveyor, but the broker said it wouldn't make much difference to the the lender.
The broker was really surprised, I looked at Zoopla prior to it, and their valuation ranged from about £85k to £95k.
He is working on some of the other deals available.Thanks to all the competition posters.0 -
foxy-stoat wrote: »But you DID get an offer from Halifax based on their valuation of £110,000?
I would go with that if you must remortgage and sort out the interest only part....can you not work out how much you need to save to clear the interest only debt on the mortgage and make your own savings plan?
Yes we got a chance to stay with Halifax with that valuation(index linked) and they also came back to say we did pass the affordability for going full repayment, however, with an LTV rate of about 70% with their valuation, the best rate they had was 3.59% 5 yr fixed.
The other went for were only 2.something % over 2/3 years and on 80-90% LTV.Thanks to all the competition posters.0 -
What's your current interest rate?
How much is outstanding on the repayment part?
How much is outstanding on the interest only part?
How long left on your fixed rate?
How long left on the repayment part?
How long left on the interest only part?
Do you make overpayments?
Can you afford to make overpayments?Mortgage started 2020, aiming to clear 31/12/2029.0 -
MovingForwards wrote: »What's your current interest rate?
How much is outstanding on the repayment part?
How much is outstanding on the interest only part?
How long left on your fixed rate?
How long left on the repayment part?
How long left on the interest only part?
Do you make overpayments?
Can you afford to make overpayments?
In Order
2.44%
£41k
£30k
31/01/20
18yrs
5yr 9 month
No
No with increased payments due next month.
In addition, current payment just under £300, due to go up to about £380-400 on either full repayment over 21 years on new rate.
The funds we have to afford the increase in monthly payments has been used to get rid of other small credit cards debts etc over the past couple of years.Thanks to all the competition posters.0 -
The estimated values on Zoopla etc are just that, estimations.
You need to look at what similar houses with the local vicinity have actually sold for as this is what valuers will be looking at.0 -
The estimated values on Zoopla etc are just that, estimations.
You need to look at what similar houses with the local vicinity have actually sold for as this is what valuers will be looking at.
That’s one of the other problems, within about a mile radius there has been about 6 sales, and they are all bar one new build houses, most people in my area buy their house and stay for a long time, ex council houses in good few streets either side of me.Thanks to all the competition posters.0
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