Remortgage valuation query

[aussieal]

Evening all

I'm in the process of remortgaging, as current deal is up in May.

We're looking to borrow a little more to do some home improvements (£15K), and thought we'd secured a good rate (1.24% on 5 year fixed) with Santander.

However, their desktop valuation has come up short of the required 70% LTV. We'd had it valued by a couple of estate agents at £525k to £550k, but the valuation has come back at £485k. Would need to have been c.£518k to hit the LTV.

There are a couple of recent sales on the land registry that would support my valuation, not to mention 10 or more that are all sold STC in the immediate vicinity that would support the higher of the estate agent valuations.

Has anyone had any experience in challenging these desktop valuations? Is it worth it, or am I better just accepting the slightly less favourable rate of 1.61% at 75% LTV, taking the additional monthly of c.£50 on the chin and moving on?

Thanks

[Killer2005]

Surprising they aren't going for a full valuation. I don't know their processes but at a previous employers, if the lending didn't fit on the desktop then a full valuation was instructed.

You should however take a estate agents figures with a pinch of salt, their valuation is different to an actual mortgage valuation.

[oxnop]

Vary rarely would lenders accept a challenge to a desktop. Unless inside M25, flats and some other weird scenarios.

I’m seeing a lot of what customers perceive to be ‘down valuations’ currently, in the main where they are paying over asking and expecting that the valuation comes back to support their borrowing. The housing market is prob a bit overpriced at moment and with lots of uncertainty around economy, surveyors are being a bit more cautious with vals.

Edited by oxnop on Wednesday 24th March 20:38

[Sarnie]

aussieal said:

Evening all

I'm in the process of remortgaging, as current deal is up in May.

We're looking to borrow a little more to do some home improvements (£15K), and thought we'd secured a good rate (1.24% on 5 year fixed) with Santander.

However, their desktop valuation has come up short of the required 70% LTV. We'd had it valued by a couple of estate agents at £525k to £550k, but the valuation has come back at £485k. Would need to have been c.£518k to hit the LTV.

There are a couple of recent sales on the land registry that would support my valuation, not to mention 10 or more that are all sold STC in the immediate vicinity that would support the higher of the estate agent valuations.

Has anyone had any experience in challenging these desktop valuations? Is it worth it, or am I better just accepting the slightly less favourable rate of 1.61% at 75% LTV, taking the additional monthly of c.£50 on the chin and moving on?

Thanks

What valuation figure did you give Santander?

[aussieal]

oxnop said:

Vary rarely would lenders accept a challenge to a desktop. Unless inside M25, flats and some other weird scenarios.

I’m seeing a lot of what customers perceive to be ‘down valuations’ currently, in the main where they are paying over asking and expecting that the valuation comes back to support their borrowing. The housing market is prob a bit overpriced at moment and with lots of uncertainty around economy, surveyors are being a bit more cautious with vals.

Edited by oxnop on Wednesday 24th March 20:38

Thanks, I suspected that might be the case and can understand the rationale. Inclined to go with the 75% LTV and move on.

[aussieal]

Sarnie said:

What valuation figure did you give Santander?

I went with £535k, wrongly assuming that they would do a physical valuation rather than a desktop one.

[Sarnie]

aussieal said:

I went with £535k, wrongly assuming that they would do a physical valuation rather than a desktop one.

Since CV-19 lenders will carry out a Desktop valuation wherever possible, especially where the LTV is low. The problem is that you can only appeal a Desktop valuation usually, if it's more than 10% out from the clients figure, which yours isn't because it's looks like you've gone in with a strong figure............if you only needed £518k to meet the LTV, thats what you should have gone with

[anonymous-user]

Have you done anything to the house since you got it? If so, I would explain the information they have valued on is not reflective - desktop is a range and they come in often below market due to factoring.

I would explain the local market, and that you only need 518k and how surprised you are at their valuation as you had done your own research. They may send someone to survey, or they may change it over the phone, as lenders absolutely do have some leeway on a desktop.

If you haven't made changes, I would still speak to them. There's literally nothing to lose.

[aussieal]

Helpful advice, thanks guys.

I've decided to go back and challenge - will let you know how I get on.

[aussieal]

Just to close the loop on this, we opted to simply remortgage rather than borrow additional funds to sort the work we want to do.

In doing so, and in appealing the valuation, we got Santander up to £500k, which meant we hit the LTV needed to secure the 1.24% rate for 5 years.

So all in all, happy with how it turned out and have managed to cut 4 years off the term, whilst keeping the monthly the same.

Santander were painfully slow though in the assessment, seemed to take a week every time something was changed or queried.

Thanks for your advice, helpful as always.