How a Revaluation Saved Our Client Money
As a mortgage and protection adviser I speak to a lot of clients who want to make adjustments, to their mortgage agreements, this can unlock capital for improvement projects or simply cut the cost of long term mortgage borrowing. In this example, we helped our client to make significant savings on their monthly payments by investigating how much their property was worth in the current market.
Client Situation
Our client had an outstanding mortgage balance of £153,000 with a high street lender. The initial property valuation provided by the lender was just above £190,000, which meant the loan-to-value ratio was slightly above 80%. This limited the client’s options for securing a mortgage with a favourable interest rate.
SN Financial’s Intervention
To obtain a more accurate property valuation, our team utilised the HomeTrack system. This online tool provided a more realistic estimate of the property’s value, which we found to be around £210,000.
Based on the HomeTrack valuation, we submitted a formal appeal to the lender requesting a revaluation of the property at £205,000. Our goal was to reduce the loan-to-value ratio below 75%, which would open up access to more competitive mortgage rates.
Successful Outcome
Within two days, the lender confirmed the revised valuation of £205,000. This reduced the loan-to-value ratio to just under 75%, allowing us to secure a mortgage with a lower interest rate for our client.
Key Benefits
- Significant cost savings: By obtaining a more accurate valuation, our client was able to secure a lower interest rate, resulting in substantial savings over the life of the mortgage.
- Expanded options: A lower loan-to-value ratio opened up access to a wider range of mortgage products.
Something to Consider
This case study demonstrates the importance of seeking professional financial advice when it comes to mortgages. By utilising our expertise and leveraging available tools, we were able to secure a more favourable mortgage rate for our client, saving them significant money over the long term.
For advice on your situation do get in touch with our team of experts who will be happy to work with you to find the right solution. enquiries@snfinancial.co.uk
