Valuation House Remortgage Guide: Home Valuation for Remortgage Tips from an RICS Valuation Surveyor

Thinking about changing your mortgage can be stressful. One key part is the remortgage valuation survey. This decides how much your home is truly worth to lenders. Our guide, packed with advice from RICS Valuation Surveyors, will lead you through this process simply and swiftly.

House Valuation: Types of Remortgage Valuation Surveys

Choosing the right kind of survey on the value of your property before you remortgage is important to your outstanding mortgage. Each survey serves a different need for your property's loan to value assessment similar to your original mortgage application.

Mortgage Valuation Survey

A Mortgage Valuation Survey checks your home's market value for the bank. It makes sure the house is worth what you're borrowing. This step is a must for lenders during a remortgage process, as they want to see that their loan is safe if they need to sell your property. For this task, valuers use online valuation tools and methods approved by RICS.

This valuation report includes basic information about your property, like its size and overall condition, but doesn't review all of the important building pathology elements.

Valuers might carry out a physical property valuation by visiting the house or do what's called a "Desktop Valuation" from afar. Either way, they aim to figure out how much money the property could bring in today's market.

Condition Report

A Condition Report is a simple check of a house, which tells you about the house condition. This report works best for new houses to see if there are big concerns with the building. Yet, it won't tell you how to fix any issues found. Think of it as a first glance at the property's health, helping buyers understand what they're getting into without overwhelming details. A Condition Report highlights urgent defects.

Homebuyer Report

A Homebuyer Report investigates more deeply than a straightforward condition report, highlighting significant problems that may affect the property's price. This report provides details about issues such as dampness or incorrectly executed construction. It offers insights into potential future repairs and their associated costs.

This form of survey scrutinises your prospective residence without prying under floors or concealed behind walls. Ideal for modern homes in acceptable condition, it offers home buyers reassurance before finalising the purchase.

The surveyor reviews estate agent documentation and utilises resources such as property value charts to inform their analysis, ensuring every pound invested in remortgaging your property contributes to a solid financial venture.

Building Survey

A building survey is an in-depth investigation of a house condition. It's good for old or complex dwellings or those with structure problems. This survey looks at all parts of the property closely and surveyors will share what fixes the house needs.

The condition of the property may affect how much your house is valued for a remortgage.

Remortgage Valuation Explained

Your house valuation for remortgage explained: the way you get a remortgage valuation is relatively straightforward. It checks how much your house is worth by way of a property valuation for your remortgage. You might see someone visit your home, or they could just look at information online as part of the valuation process. This step helps decide if you can get the new remortgage application deal you want.

Basic Valuation for Lenders

Lenders often need a simple way to value houses when people want to remortgage. They usually go for what's known as a desktop valuation. This means they look at prices of similar homes (comparable property) sold recently in the area without having to visit your house for your new mortgage.

It’s quick and cost-effective to value your property in this way, relying on real estate appraisal data and automated valuation models (AVMs). These tools use lots of info from past sales, mortgage dealings, and property features to decide your home worth.

Desktop valuations give lenders a fast snapshot of a property's value using bespoke software for the remortgage valuation process.

After this step, lenders might also consider physical checks or even drive-by appraisals if needed (i.e. visit your property). This ensures that the loan to value ratio remains honest, affecting deals you get on interest rates or mortgages.

Physical Property Visit or "Desktop Valuation"

Moving from the basics, we get to see how surveyors inspect the house value as part of your remortgage. They might come over for a visit or conduct what's called a "desktop valuation" from their computer.

A physical property visit lets qualified surveyors look around your home. They see its condition with their own eyes and compare it to other houses nearby, which helps them understand how much your property is worth.

Sometimes, they use desktop valuation instead. Here, they don't come over in person but use recent sales data about similar homes in your area (known as comparable data). By looking at what prices these homes sold for, they can guess how much yours might sell for too. It's quite smart because it saves time and still gives a good idea of your home's value without anyone needing to step through the door, but it will not check for physical problems with the property.

"Drive-By Valuation"

Shifting focus from the more involved methods, we have "Drive By Valuation." This way steps back a bit, offering a swift look at a property. One simply views it from outside, without stepping in.

It's less detailed but quicker than others. Estate agents often use this method for their own market appraisal. Think of it as taking a quick glance to gauge what's there. This sort of inspection helps when time is short or for getting a rough idea of property values in the real estate market. Since no one goes inside, it relies heavily on how things appear from the outside.

So, it may not be as accurate. Yet, even this quick check can inform lenders and mortgage providers about potential investments or loans.

Costs and Lender Offerings on a House Valuation for Remortgage

Finding out how much a house value survey costs depends on numerous factors. Prices vary a lot, but some mortgage providers might do it for free.

Range of House Valuation Costs

Valuation costs for houses have a wide range. They start at £250 and can go up to £2,500. The reason for this large discrepancy is because of the property's price and how complex it is. A simple valuation for a small flat will cost less than a big house with many rooms.

The right valuation can make a huge difference in your remortgage options.

Lenders sometimes offer free valuations as part of their mortgage deals. This helps you save money but always check what type of survey they offer. It might not cover everything to ensure the valuation is accurate. Getting your house valued is best done with an RICS Surveyor who follows Red Book guidelines.

Free Valuations from Lenders

Many lenders provide gratis house valuations as part of their remortgage deals. This implies that once you decide to remortgage, the valuation provided by the lender for your home will not incur additional charges.

Quite often, they implement this by employing desktop valuations, a swift procedure where property data from computers are utilised to estimate your home's worth without a physical visit.

Lenders offer these complimentary services because they are interested in securing your transaction in a competitive industry. By harnessing data from mortgage lending and real estate management systems, they are capable of generating satisfactory predictions.

Thus, if shared ownership is on your mind or if you're contemplating changing your mortgage rates, bear in mind that certain financial establishments will assist in determining the potential selling price of your property at zero cost.

Impact of Valuation on Remortgage

The value of your house affects how much you can borrow and the type of mortgage deals you get. A higher valuation means better loan-to-value ratios, leading to lower interest rates.

Loan to Value (LTV) Ratio

LTV ratio tells you how much of your property you truly own compared to what you owe the bank. Let's say your house is worth £200,000 and you have a mortgage of £150,000. Your LTV ratio would be 75%.

This percentage is key in remortgaging because it affects your interest rates and mortgage deals. Banks use this figure to decide how risky it is to lend to you. A lower LTV means less risk for them, which could lead to better deals for you.

Knowing your LTV ratio helps when looking to remortgage. If the market value of properties goes up, so does the value of your home, possibly lowering your LTV ratio if debts remain unchanged or decrease—this makes understanding the property market vital in managing finances effectively.

In simple terms, keeping an eye on house prices can guide smarter decisions about when and how to remortgage for favourable terms with lenders like building societies or banks involved in real estate valuation and financial reporting governance.

Influence on Interest Rates and Mortgage Deals

The value of your house compared to the loan you want affects what deals you can get. If your house is worth a lot more than what you want to borrow, you're in luck. Banks see this as less risky.

So, they offer loans with lower interest rates. This setup means cheaper monthly payments for you. Lower LTV ratios lead to better mortgage options and interest savings over time.

For those looking into buy-to-let or hoping to snap up repossessed houses as investments, it's the same deal. A strong property valuation gives access to a wider range of financial products from lenders.

These include mortgages with attractive terms that make buying or refinancing a property more affordable.

Down Valuation for a Remortgage and Reactions

When a house's value is set lower than expected, it's referred to as a “down valuation”. When you are faced with a down valuation, thish can change the game when planning to remortgage, because a lower valuation may limit the amount you seek to borrow against the current value of the property.

Reasons for Down Valuations

Sometimes, a house gets a lower value than expected. This might happen if the seller asks for too much money or if there are serious issues with the building. These could be physical, like cracks in walls or roofs that leak. These make a house worth less because they cost a lot to fix. These defects are often uncovered if a building surveyor will visit your property and put forward the structural concerns to your lender for them to take into account in the initial valuation and remortgage offer.

Lenders use mortgage brokers and RICS surveyors, CIOB surveyors and RPSA surveyors to check a home's worth before saying yes to a loan. They look at recent sales of similar homes nearby but value this one for less if it seems overpriced or has big damage.

They do this to protect themselves from losing money if they have to repossess the property in the event of mortgage default. This is why an accurate valuation carried out by a qualified surveyor is needed.

Steps to Address a Down Valuation

After finding out the reasons behind a down valuation, it's time to act.

First, talk to your mortgage adviser. They can explain what the valuer said in their report. If you think the valuer missed something or used not so good examples of similar properties, tell your adviser.

You can suggest better examples which value your house more accurately.

Next step is showing proof of higher valued properties around yours. Look for recent sales or offers on houses like yours. This proof can help make a case for a higher valuation of the property. Your adviser might then talk to the lender or valuer with this new info and ask for another look at your property worth.

Tips for Effective Remortgaging

Looking into applying for a remortgage? Be sure your property is worth what lenders would agree on. Use online tools (e.g. https://www.rightmove.co.uk/) to check house prices in your area. They help you set the right price for your home loan.

Researching Property Value

To get the best deal on your remortgage, knowing how much houses in your area sell as an idea of comparable property values is helpful.

Check the sale prices of homes similar to yours over the last 3 to 6 months. This can give you a good idea of what lenders might think your home is worth when they provide a valuation.

Estate agents can also offer guidance on property values because they know the market well. Understanding your property's value helps you set realistic expectations.

So, before talking to a mortgage lender or thinking about loan-to-value ratios, take some time to research. It'll give you a solid starting point for discussions about remortgaging options and interest rates.

Setting Realistic Expectations

Knowing the true worth of your property before a remortgage valuation is key. Look at recent sales in your area for a clear view and don't count on money you plan to spend on fixing up the place to increase its value now.

What your home is worth today matters, not what it could be after renovations.

Utilising Online Tools

Using online tools like property investment analytics or house price calculators can be also be of assistance. These tools use lots of data to estimate how much homes are worth based on recent sales and market trends.

Yet, they're not a full replacement for official valuations by lenders, who are often more conservative with their figures.

Importance of Collaboration with Mortgage Broker

Working with a mortgage advisor makes remortgaging easier. They understand the market and can guide you to the best deals for your needs.

Tailored Advice for Remortgage Options

Selecting the appropriate direction for your remortgage requirements with a mortgage broker can simplify the process. They scrutinise your individual circumstances to discover deals that are a perfect fit.

These specialists consider your income and what you owe on your property. Following that, they utilise this data to pair you with lenders who are likely to agree.

Having a close relationship with a broker means you receive advice that's exclusively for you. They are well-versed in all aspects of loan-to-value ratios and their potential impact on your choices.

Furthermore, they monitor the market for any fluctuations that may be beneficial or detrimental to your chances of securing a favourable deal. Thus, with their comprehension of banking systems and interest rates, they can guide you in the direction of decisions that will save money in the long term.

Contact a Remortgage Valuation Surveyor London to Get a Remortgage Valuation

Getting the right advice from an RICS surveyor can make your remortgage journey successful. They guide you through different types of surveys (Valuations) and what lenders look for and make sure your valuation is independent. Understanding your property's value helps in securing better mortgage deals.

So, do your homework, talk to experts and use online resources well (Contact Us today). This way, remortgaging becomes less of a puzzle and more of a clear path forward.

For more information on what Red Book Valuations cover, see When you Need a Red Book Valuation in Wimbledon London.