Mortgage Valuation

[McSteamyorMcdreamy]

Posting for traffic!

DH and I are remortgaging - 1st time after initial fixed.

When we purchased the property 2 years ago a desk top valuation was completed.

Now coming to remortgage and the mortgage provider want someone to come in to the property and actually value it.

The approximate value we gave to Santander is what Virgin Money gave following a desk top valuation back in July (we didn't go with them in the end because rates started going down)

I've been reading up and according to ye olde interweb it's because the lender thinks we might have overstretched and therefore more risk, but a quick Zoopla search shows that what Virgin gave is slap bang in the middle of estimates, in fact we under valued it when filing out the Virgin application.

I'm petrified they are going to undervalue by about £40k and bugger up our LTV!

In experiences are home visit valuations becoming more normal after COVID or am I massively overthinking this?!!

Can I ask what you hope the LTV is?
My understanding is the the higher your equity the less likely they will need to do a proper valuation.

Ltv is Loan to value. Eg mortgage of 80k house value 100k.

Sorry replied in error. I thought you asked what ltv means

@labmum567

Our application is LTV of 66% we were able to put down quite a healthy deposit and we got it a "relatively" good deal as it needed quite a bit of work done to it. One next block down recently went for £285k and the one opposite has just gone for £335k but they were both immaculate. Ours is very much a work in progress!

Virgin valued it at £285k back in July but think it was more because what the 1st one sold for and in better nick than ours.

We just had a valuation done due remortgaging in March . It's the first time we have had someone come out to the house to do the valuation .

He was he yesterday for a hour , measured the house , garden and took photos of the house . We got a message last night saying that the mortgage has been approved . No idea what the actual valuation was

If you put the 285k virgon quoted, how much did you originally purchase the property for?

If it was 200k and you are expecting the property to have jumped by 85k in 2 years, I wouldn't be surprised that they want to verify the valuation. As unless you have had a huge extension, it is unlikely to have gained so much in value.

I have a mortgage so went through this in 2020, my remortgage isn't until 2025 luckily.

Ours went up £100k with the valuation - 18months after purchase. Santander (500k to 600k)

@CaputDraconis we purchased for £229k

It's a 3 bed ex council flat (huge), in a very popular location in SE with station on the mainline to London.

So roughly a 25% increase in 2 years when property prices are reported as dropping nationwide. I'm not surprised they want to verify it with a proper valuation.

I'm in a similar location so appreciate prices aren't dropping as much in SE commuter towns, but I'm not surprised they want to verify it.

We had a valuation on a low LTV, that had had an extension added since the previous mortgage was taken out, so the value we "needed" would have been far less than the actual value.

No idea what number they came back with but it's all gone through no bother.

@CaputDraconis

I'm just keeping everything crossed and hope they come back with the same as Virgin!

We had a valuation about a year ago and it was LOW and messed up our LTV. The surveyor said he had to value it to sell "tomorrow"' if we were to default on our repayments so not necessarily a market value (in our case quite considerably lower than two local estate agents had valued it). Good luck.

She has been.

Lots of measuring. She asked where the estimate came from and I told her it was desktop from Virgin and what the others have gone for (being in a better decorative condition than us). She knows the area and she asked me to get up Rightmove and look at smaller properties in the area (on for 5k less than what Virgin approximated)

She said we got a bargain when we originally purchased due to the size and location and I told her it needed a lot of work.

When walking out she asked me what valuation we needed so as not to affect LTV and interest rate on product and I told her it was the 285k we put on the application and she said "oh you should be fine"

Now keeping everything crossed 🤞