Down valuation on personal home remortgage..

[MAXTUC]

Hey guys,

 

Currently remortgaging by personal residence to free up some capital and by a 4th BTL.

Just a quick question, current market price for the house is 350-375k, lender valuation came in at 314k..

I can still access the additional borrowing i would like with the lenders down valuation, on the rate etc originally offered by the lender..

 

But is this something i need to address with the lender?

Changing the LTV won't effect the rate offered etc and i'm still accessing the money i require just with a lower value on paper..

Just want some advice on wether to leave it and crack on or address it?

My head is saying push on, valuation is irrelevent unless it impacted the borrowing request?

 

Thanks again,

Max

 

[Stuart Phillips]

Crack on.

The lender estimate is just that, an estimate. You'll only know the try value when someone agrees to buy it from you.

It's not recorded anywhere outside the lender, it won't be on land registry, so any future buyer will never see this figure.

[astonthemortgageguy]

You’re exactly right, as the valuation is impacting the amount you can borrow or the rate, there isn’t any benefit in challenging the figure. It is also extremely difficult to appeal a valuation. 

[MAXTUC]

17 hours ago, Stuart Phillips said:

Crack on.

The lender estimate is just that, an estimate. You'll only know the try value when someone agrees to buy it from you.

It's not recorded anywhere outside the lender, it won't be on land registry, so any future buyer will never see this figure.

 

17 hours ago, astonthemortgageguy said:

You’re exactly right, as the valuation is impacting the amount you can borrow or the rate, there isn’t any benefit in challenging the figure. It is also extremely difficult to appeal a valuation. 

 

Thank you guys! Much appreciated!

[EvolutionBlogger]

18 hours ago, MAXTUC said:

Currently remortgaging by personal residence to free up some capital and by a 4th BTL.

Just a quick question, current market price for the house is 350-375k, lender valuation came in at 314k..

I can still access the additional borrowing i would like with the lenders down valuation, on the rate etc originally offered by the lender..

 

But is this something i need to address with the lender?

Changing the LTV won't effect the rate offered etc and i'm still accessing the money i require just with a lower value on paper..

Just want some advice on wether to leave it and crack on or address it?

My head is saying push on, valuation is irrelevent unless it impacted the borrowing request?

 

Down valuations are a fact of life. Valuers often feel the need to be cautious when doing valuations

And some valuers are just *****. They know they can scupper your deal. I've had valuers ask me 'how I can afford this property?', which is normally sign the valuation isn't going to go well. These days, if I meet a valuer, I never tell them I own the property. I just say that I'm an agent and that I don't know who the owner is. Even better, I ask the estate agent to provide access.