Case Study –Remortgage | Down Valuation

Value	£1,250,000
Loan Amount	£937,500
Location	Wandsworth
LTV	75%
Achieved Rate	1.64%
Completed	June 2022
Adviser	Courtney Flockhart

The Client

Our client needed to remortgage, as his current mortgage rate was coming to an end. Despite multiple chases to the client in the 6 months prior to expiry, it was only the month prior to expiration that the client got in touch. However, with a strong income, affordability was not a concern.

The Solution

We were able to source a temporary tracker rate which was better than the 3.99% variable rate that the client would have rolled onto at 1% over the Bank of England base, while we worked on remortgaging to the best available rate. We got the lending agreed upon within 10 days, however, this was dependent on the valuation, which we understood could be an issue as there was a lack of comparable evidence. On this basis, we specifically picked a lender that would allow for a second valuation.

The Henry Dannell Difference

Initially, after submission the valuer, unfortunately, downvalued the property to £975,000, putting the client at over 90% loan to value. At this level, the lender we had applied with and secured a rate would not be able to proceed, as this was over their maximum loan level. On this basis, we scheduled a second valuation with another valuer which led to the valuation increasing by over £300,000, enabling the client to reach the borrowing they required.