Low mortgage valuation in the current market
Discussion
Property price agreed £445,000
Mortgage valuation £420,000
Zoopla 'low' valuation £490,000
Doesn't stop me buying it but changes the LTV to the 10% bracket which impacts the rate about 0.35% unecessarily.
Any tips on how to combat this? Could switch lender but had to pay £100 for the mortgage valuation on this one which is a bit annoying and could have the same issue. Asked the agents to argue it - There is literally nothing available in the area for anything near that value yet alone where this house is - People fight for them even now as the 2 biggest employers in the county are walking distance, nothing stays for sale long.
Mortgage valuation £420,000
Zoopla 'low' valuation £490,000
Doesn't stop me buying it but changes the LTV to the 10% bracket which impacts the rate about 0.35% unecessarily.
Any tips on how to combat this? Could switch lender but had to pay £100 for the mortgage valuation on this one which is a bit annoying and could have the same issue. Asked the agents to argue it - There is literally nothing available in the area for anything near that value yet alone where this house is - People fight for them even now as the 2 biggest employers in the county are walking distance, nothing stays for sale long.
Property price agreed - is irrelevant to the lender. You could have offered £1m for it, they are not going to fund that difference.
Zoopla 'low' valuation - is complete irrelevant bullsh*t and just forget you ever saw it.
Mortgage valuation - is the ONLY game in town for a lender. They will ONLY go off this.
Once a valuation is there, I doubt you will find much variation in lenders. You need to fund the difference between valuation and agreed price. Nothing you can do.
Zoopla 'low' valuation - is complete irrelevant bullsh*t and just forget you ever saw it.
Mortgage valuation - is the ONLY game in town for a lender. They will ONLY go off this.
Once a valuation is there, I doubt you will find much variation in lenders. You need to fund the difference between valuation and agreed price. Nothing you can do.
From a mortgage perspective, the lender will of course be cautious in the current climate. In the worst case, they’ll need to be confident that they can recover 100% of the lent funds if you default. When the market is stagnant, their approach is of course understandable.
As above; you’ll need to fund the difference. Another mortgage provider may in any case use the same valuer.
As above; you’ll need to fund the difference. Another mortgage provider may in any case use the same valuer.
Yes i think moving providers is a bit pointless.
The rate will be approx 4.4% i think with the 10% LTV - we can still buy just more pm obviously.
I can put another 8-10k in at a push for the deposit and make an overpayment of maybe 12-15k over the course of the 2 year fixed period to prep it for renewal - suppose that's the only option really.
It's just odd, a clone house (estate) on the same road was listed at 450 and sold for 460 the next day, there is one similar size property that sold for 420 this year but has less footprint and one less bathroom and worse condition. This one is definitely not the 'same' as that.
will see what they can do, if they can get the valuation up a bit, i might be able to make up the difference depending on how much.
The rate will be approx 4.4% i think with the 10% LTV - we can still buy just more pm obviously.
I can put another 8-10k in at a push for the deposit and make an overpayment of maybe 12-15k over the course of the 2 year fixed period to prep it for renewal - suppose that's the only option really.
It's just odd, a clone house (estate) on the same road was listed at 450 and sold for 460 the next day, there is one similar size property that sold for 420 this year but has less footprint and one less bathroom and worse condition. This one is definitely not the 'same' as that.
will see what they can do, if they can get the valuation up a bit, i might be able to make up the difference depending on how much.
joropug said:
Yes i think moving providers is a bit pointless.
The rate will be approx 4.4% i think with the 10% LTV - we can still buy just more pm obviously.
I can put another 8-10k in at a push for the deposit and make an overpayment of maybe 12-15k over the course of the 2 year fixed period to prep it for renewal - suppose that's the only option really.
It's just odd, a clone house (estate) on the same road was listed at 450 and sold for 460 the next day, there is one similar size property that sold for 420 this year but has less footprint and one less bathroom and worse condition. This one is definitely not the 'same' as that.
will see what they can do, if they can get the valuation up a bit, i might be able to make up the difference depending on how much.
Personally, re funding a larger deposit, I'd be a little wary as keeping those funds (The £8-10k you can currently find and the £12-15k you believe you can accrue over the next two years) to one side. The rate will be approx 4.4% i think with the 10% LTV - we can still buy just more pm obviously.
I can put another 8-10k in at a push for the deposit and make an overpayment of maybe 12-15k over the course of the 2 year fixed period to prep it for renewal - suppose that's the only option really.
It's just odd, a clone house (estate) on the same road was listed at 450 and sold for 460 the next day, there is one similar size property that sold for 420 this year but has less footprint and one less bathroom and worse condition. This one is definitely not the 'same' as that.
will see what they can do, if they can get the valuation up a bit, i might be able to make up the difference depending on how much.
The reason being that your 2 year 'discount' is a trigger point when it rolls over for the lender to review the property value and how much deposit they want.
Ie, it is feasible that if over the next two years the value of your property is deemed to have fallen 10% that would mean your initial 10% deposit has been 100% eroded and a lender would require a fresh 10% deposit in order to offer a new deal.
For a cost of 0.35% on the total loan over two years I'd favour keeping the spare cash to one side. The interest it earns would go a little way to offset the cost also.
You may be able to 'appeal' the value. If you can show very similar comparable that have sold recently (and you know the sold price) the value will likely take a look.
I hated many things about Valuation, but especially the buyers/lenders who would sue in a second if I overvalued a property, or missed something but then winged like mad if in my opinion it was worth less than what they had offered.
The first attack always seems to be on the valuer - and not the seller....
I hated many things about Valuation, but especially the buyers/lenders who would sue in a second if I overvalued a property, or missed something but then winged like mad if in my opinion it was worth less than what they had offered.
The first attack always seems to be on the valuer - and not the seller....
surveyor said:
You may be able to 'appeal' the value. If you can show very similar comparable that have sold recently (and you know the sold price) the value will likely take a look.
I hated many things about Valuation, but especially the buyers/lenders who would sue in a second if I overvalued a property, or missed something but then winged like mad if in my opinion it was worth less than what they had offered.
The first attack always seems to be on the valuer - and not the seller....
The trouble is with this area in particular, is the demand, it's super high and always will be. There are probably 10,000 workers within a 10 minute walk but its a nice family area still. The prices i think are actually too low....i.e. im getting it for a good price. I hated many things about Valuation, but especially the buyers/lenders who would sue in a second if I overvalued a property, or missed something but then winged like mad if in my opinion it was worth less than what they had offered.
The first attack always seems to be on the valuer - and not the seller....
Even that said, there isn't anything like it for 420k, not even close, anything under 450k is in one of the 'cheaper' areas.
The deposit will still be 65-70k so a decent amount of equity. My GF and I both rent at the moment and the bills will be lower than our flats regardless.
They do get it wrong.. I lost a sale when an out of town valuer came in and used the next door estate for comparable's where the 3 bedrooms were more chicken coup than house..
Likewise I've down valued in nice areas where the price was simply too high and unsupported by comparable.
Most valuers start with a view that a house sale is pretty good evidence of an open market transaction and would need pretty strong evidence to move.
Likewise I've down valued in nice areas where the price was simply too high and unsupported by comparable.
Most valuers start with a view that a house sale is pretty good evidence of an open market transaction and would need pretty strong evidence to move.
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