Mortgage Rate Rises
- Thread starter glenimp617
- Start date
The lender should do that, if you're switching to a new lender then they may send someone round to give a valuation.
We had Nationwide offer us a renewal rate in Nov, to take action in March. We took a new fixed, that seems good and it's guaranteed.. but we can also change our minds up until it actually renews.
Once the new rate is active though, there would likely be an early-cancellation penalty I think, like usual.
That's what I thought so our fix ends in September but can apply in April. I was thinking just take the best rate I can in April then if things get better change to that instead.
Yup. Should be fine I think - obviously depends on lender.
I have a 4.29% 3-year fixed lined up, which I think I'll keep as it seems inline with expectations.
well, talking about valuations.
we had an unhappy valuator in clearly, she dropped the value by so much.
we paid 432k for our house in 2022, the area average has gone up by 7% since. Same street houses with no 5/6 car driveways, smaller gardens and in need of full decorating are selling for 400-420K.
she valued ours at £400K with 0 reasoning and after 10 minute check/measure of some areas, not even the whole house.
wild! this killed the deal we were going for as it's a chunky down-valuation.
we decided to wait till March and see what our current lenders offer as new deal and go from there, our current expires end of June.
what a kicker.
spoke with our advisor and he said it makes no sense to him either as there's no way the house is worth that "little" and she must've had a bad day or something. Either way, we got some time to shop around and we'll review our offers in March. Hate this process.
we had an unhappy valuator in clearly, she dropped the value by so much.
we paid 432k for our house in 2022, the area average has gone up by 7% since. Same street houses with no 5/6 car driveways, smaller gardens and in need of full decorating are selling for 400-420K.
she valued ours at £400K with 0 reasoning and after 10 minute check/measure of some areas, not even the whole house.
wild! this killed the deal we were going for as it's a chunky down-valuation.
we decided to wait till March and see what our current lenders offer as new deal and go from there, our current expires end of June.
what a kicker.
spoke with our advisor and he said it makes no sense to him either as there's no way the house is worth that "little" and she must've had a bad day or something. Either way, we got some time to shop around and we'll review our offers in March. Hate this process.
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Caporegime
- Joined
- 22 Oct 2002
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- 28,472
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- Boston, Lincolnshire
Ours got down valued by around 40k. Must be one of those things happening at the moment. I was a bit miffed but couldn't be bothered to fight it as our LTV was still the max so just went ahead.
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yeah for us it meant no chance of a deal, it was done by e.surv who apparentely are known to be terrible at valuing things. Reading their reviews gives you an idea. The dumbest thing is, I can't find a sigle house sold for the value they valued ours in the area, not even 3 mile range. Idiots and a waste of our time and a hard check against our credit.
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I get it's annoying but presumably their reviews are largely filled with people not getting the valuation they want.
Not exactly representative of their service in that sense.
Mad valuations torpedoed the economy 10 years ago remember.
oh I agree, dissapointed people will complain more but the value they gave our house is insane, I understand if it was structurally gone or had a bad roof or similar but there's nothing wrong with the property, if anything it has been improved since we bought it in 2022 with new boiler, radiators, redecorated, new driverway etc yet they dropped the value by 32k which puts it at a number that won't buy you anything here? it just doesn't add up.
I wonder how much of it was lender getting out of it as the deal we tried to get is not available anymore.
@grudas
We use e.surv and Connells, although they are panel managers as such, they do have their own valuers but also sometimes do panel out to other smaller local valuers.
You could try to appeal the valuation figure, but you will need to provide comparables of recently sold houses (so not just what an estate agent thinks) they need to be actual sold values of comparables properties usually within the last 3-6 months. If I am honest though its a ball ache and they rarely change their mind, we usually tell people not to bother.
I promise you the lender has little to no influence on the valuers at all, they are a third party and for good reason.
You also need to be careful because when you are talking about new boilers and modernisiation etc, it actually has little affect on the value as such, they use mainly comparable data and use the floor area, I see it all the time when people buy a house for say £200k, spend £50k on it, and are surprised when its still worth £200k.
We use e.surv and Connells, although they are panel managers as such, they do have their own valuers but also sometimes do panel out to other smaller local valuers.
You could try to appeal the valuation figure, but you will need to provide comparables of recently sold houses (so not just what an estate agent thinks) they need to be actual sold values of comparables properties usually within the last 3-6 months. If I am honest though its a ball ache and they rarely change their mind, we usually tell people not to bother.
I promise you the lender has little to no influence on the valuers at all, they are a third party and for good reason.
You also need to be careful because when you are talking about new boilers and modernisiation etc, it actually has little affect on the value as such, they use mainly comparable data and use the floor area, I see it all the time when people buy a house for say £200k, spend £50k on it, and are surprised when its still worth £200k.
absolutely, the fact is, I'm not bothered about the value going up, the area in general has had growth non stop, pre 22 and post 22, if they valued our house the same as we paid, I'd be happy and I expected that - it's still below any online estimator by 20-50k but not 70k+
yeah we're not bothering with the appeal etc, there's no appeal afaik either as it was valuation done by the lender not us so we can't really appeal.
what frustrated me the most is that they didn't really check the property, didn't bother measuring half the house? it was just quick in and out and bam you're done.
our house is a bit unique too, half the road has no driveways, steps to get to the property and smaller gardens. Ours is a bigger end of terrace plot with biggest driveway here and probably 2nd/3rd largest plot in general.
I suppose resale wise the new boiler etc makes a difference, maybe not to surveyors/value overall.
like I said, I'd be perfectly happy with it being the value we paid in 2022, but downvalue is the thing I didn't expect. Frustrating process in general.
Generally speaking most lenders use something called the Halifax Price Index which monitors house prices across the country and as long as your not claiming a much higher value, they will do what's called a paper valuation. They may extend that and do a drive by valuation, basically making sure the property is still there. If they aren't satisfied with that they will do a full valuation, all of which is covered by the product fee.
Thank you. A calculator I used estimated a ~£17k uptick in what we paid (pinch of salt applied). We've put money into modernising/upgrading so interested to know if that would be reflected but that wasn't the main reason for doing so.
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Only if you dont agree with the remortgage valuation would a more detailed valuation take place. Modernising/upgrading really has minimal impact on value unless its along the lines of extensions etc
Caporegime
- Joined
- 22 Oct 2002
- Posts
- 28,472
- Location
- Boston, Lincolnshire
Maybe that is because houses are not selling now or are actually selling for less. They all have models etc for how they see the future panning out. After all they are valuing your house as a minimum over the course of that mortgage. Just because houses have recently sold for that price doesn't mean they are going to be worth that in a few years time.
Both you and I have had massively low ball valuations and are in different parts of the country so they are most likely expecting something or it is very risky.
My friend bought his two bed house in 2007 and was in negative equity for nearly ten years! It has happened before and can happen again.
