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    • smitchy73
    • By smitchy73 9th Jan 20, 10:02 AM
    • 1,823Posts
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    smitchy73
    Problems with LTV
    • #1
    • 9th Jan 20, 10:02 AM
    Problems with LTV 9th Jan 20 at 10:02 AM
    Iíve 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 donít get it, or am I missing something?
    2015/16 - £200 High Street Vouchers/Vodafone Prize pack+Beats Headphones(£600)
    Thanks to all the comp posters.
Page 1
    • ACG
    • By ACG 9th Jan 20, 10:14 AM
    • 19,874 Posts
    • 11,408 Thanks
    ACG
    • #2
    • 9th Jan 20, 10:14 AM
    • #2
    • 9th Jan 20, 10:14 AM
    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 Adviser
    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.
    • smitchy73
    • By smitchy73 9th Jan 20, 12:12 PM
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    smitchy73
    • #3
    • 9th Jan 20, 12:12 PM
    • #3
    • 9th Jan 20, 12:12 PM
    I’m in a mid-terrace and all the homes look the same.
    2015/16 - £200 High Street Vouchers/Vodafone Prize pack+Beats Headphones(£600)
    Thanks to all the comp posters.
    • ACG
    • By ACG 9th Jan 20, 12:16 PM
    • 19,874 Posts
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    ACG
    • #4
    • 9th Jan 20, 12:16 PM
    • #4
    • 9th Jan 20, 12:16 PM
    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 Adviser
    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.
    • foxy-stoat
    • By foxy-stoat 9th Jan 20, 2:24 PM
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    foxy-stoat
    • #5
    • 9th Jan 20, 2:24 PM
    • #5
    • 9th Jan 20, 2:24 PM
    after getting a not very good offer from current lender Halifax
    Originally posted by smitchy73
    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?
    • smitchy73
    • By smitchy73 13th Jan 20, 4:41 PM
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    smitchy73
    • #6
    • 13th Jan 20, 4:41 PM
    • #6
    • 13th Jan 20, 4:41 PM
    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?
    Originally posted by ACG
    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.
    2015/16 - £200 High Street Vouchers/Vodafone Prize pack+Beats Headphones(£600)
    Thanks to all the comp posters.
    • smitchy73
    • By smitchy73 13th Jan 20, 4:46 PM
    • 1,823 Posts
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    smitchy73
    • #7
    • 13th Jan 20, 4:46 PM
    • #7
    • 13th Jan 20, 4:46 PM
    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?
    Originally posted by foxy-stoat
    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.
    2015/16 - £200 High Street Vouchers/Vodafone Prize pack+Beats Headphones(£600)
    Thanks to all the comp posters.
    • MovingForwards
    • By MovingForwards 13th Jan 20, 7:02 PM
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    MovingForwards
    • #8
    • 13th Jan 20, 7:02 PM
    • #8
    • 13th Jan 20, 7:02 PM
    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?
    • smitchy73
    • By smitchy73 14th Jan 20, 12:58 PM
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    smitchy73
    • #9
    • 14th Jan 20, 12:58 PM
    • #9
    • 14th Jan 20, 12:58 PM
    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?
    Originally posted by MovingForwards
    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.
    2015/16 - £200 High Street Vouchers/Vodafone Prize pack+Beats Headphones(£600)
    Thanks to all the comp posters.
    • Cscott139
    • By Cscott139 14th Jan 20, 1:08 PM
    • 37 Posts
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    Cscott139
    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.
    • smitchy73
    • By smitchy73 15th Jan 20, 1:34 PM
    • 1,823 Posts
    • 3,658 Thanks
    smitchy73
    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.
    Originally posted by Cscott139
    Thatís 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.
    2015/16 - £200 High Street Vouchers/Vodafone Prize pack+Beats Headphones(£600)
    Thanks to all the comp posters.
    • smitchy73
    • By smitchy73 15th Jan 20, 1:35 PM
    • 1,823 Posts
    • 3,658 Thanks
    smitchy73
    Thanks all for your inputs, we’re going with a 2 yr fixed at Halifax to tide us over, it gets us on full repayment for the whole mortgage and over that two years we can scrape up a wee extra £50 a month overpayment also, not much, but every little helps. Then we’ll review in a couple of years.
    2015/16 - £200 High Street Vouchers/Vodafone Prize pack+Beats Headphones(£600)
    Thanks to all the comp posters.
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