Low property VALS or valuations are set to cost borrowers £000's
Low property VALS or valuations will probably end up costing borrowers thousand's of pounds this year by edging them out of best-buy re-mortgage deals on the market!
The cynic in me believes lenders might be intentionally undervaluing properties, so they can edge borrows towards higher mortgage rate deals at re-mortgage time. The feeling amongst our estate agents is that borrowers need to realistic about their properties VAL when shopping around for a re-mortgage deal.
Do the maths! Did you know many borrowers still confuse 'the asking price' with 'the actual properties value'? To help borrows we've published links to free VAL calculators, Land Registry figures and more on our free property information page. The crucial figure is the LTV or loan-to-valuation percentage. Read our post 'Lloyds cut mortgage rate, but the fall in high LTV mortgages mean bigger deposits'.
To get the best possible property VAL, ask your lender for an internal VAL or better still, commission your own property VAL as many lenders do a drive-by VAL or a simple desktop VAL based on average figures in your postcode area which will skew the property valuation
The cynic in me believes lenders might be intentionally undervaluing properties, so they can edge borrows towards higher mortgage rate deals at re-mortgage time. The feeling amongst our estate agents is that borrowers need to realistic about their properties VAL when shopping around for a re-mortgage deal.
Do the maths! Did you know many borrowers still confuse 'the asking price' with 'the actual properties value'? To help borrows we've published links to free VAL calculators, Land Registry figures and more on our free property information page. The crucial figure is the LTV or loan-to-valuation percentage. Read our post 'Lloyds cut mortgage rate, but the fall in high LTV mortgages mean bigger deposits'.
To get the best possible property VAL, ask your lender for an internal VAL or better still, commission your own property VAL as many lenders do a drive-by VAL or a simple desktop VAL based on average figures in your postcode area which will skew the property valuation
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Families lose out as surveyors undervalue property in a falling property market
According to Money Mail columnist James Coney "Homeowners are having tens of thousands of pounds knocked off their property's value because they are failing to contest low valuations...As a result a three bedroom home in one street may be worth £30,000 more than another less than a mile away"
"The wrong valuation could force you on to a higher mortgage rate, pushing up the cost of repayments...The credit crunch has created a gulf between the rates offered to those with small and big deposits."
The Bank of International Settlements or BIS are 'pricking the housing bubble' according to Daily Mail columnist. Ben Laurance. Today's 'City & Finance' piece goes onto reveal cunning plans To cap LTV limits to offer the lender greater protection in the event the asset value drops. Apparently this is popular in Asian countries. So watch this space
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