house value for mortgage

[mandybabe]

Could someone please answer me a question? We are just about to swap our mortgage to a fixed rate. Have just been told that they have only valued our house at £110,000. Thats rubbish we have just had a loft conversion so its now a three bedroom house. What i'd like to know is when they value a property do they value it at auction prices so if it ever was repossessed they know that they will have a quick sale.

[mortgage_advisor]

The valuation for mortgage purposes has no real relavance to what you could sell it for.

In general, if you state it is worth x amount, when the valuer comes out, they will rarely ever say it is worth more than what you have said.

Id doesn't really matter anyway unless it is restricting the amount you can borrow or the rate you were after due to max LTV.

[Dan_Manchester]

If you disagree with the mortgage valuation then I guess you have to pick it up with the mortgage company, siting existing properties for sale in the area etc and ask them to reconsider?

If you do manage to move this forward I'd be interested to hear the outcome.

Good luck

[RCF]

Originally Posted by mandybabe

Could someone please answer me a question? We are just about to swap our mortgage to a fixed rate. Have just been told that they have only valued our house at £110,000. Thats rubbish we have just had a loft conversion so its now a three bedroom house. What i'd like to know is when they value a property do they value it at auction prices so if it ever was repossessed they know that they will have a quick sale.

Hi, this may be a bit late in the day but I have only just come on to thsi forum and spotted your post. I'd be interested to know who your mortgage is with? if it's who i think then you can contest the valuation. You do have to pay a fee to send a surveyor out - less than a normal survey fee - but I have done this with a few customers recently and found the lender's val to be way off.

hopefully you've managed to gert thsi sorted now anyway but if not let me know.

[brian]

I think you'll find at present the mortgage valuation takes a pessimistic view of resale value. They may not be looking at existing sales value, as much as value if had to sell down the road in a declining property market.