After this is will be statistical house price growth/fall based on region and property type. Most lenders source this data from two data providers, Hometrack (Owned by Zoopla) and Acadata (owned by LSL Property Group, owners of eSurve, the UK’s largest provider of bank mortgage valuations). A computer valuation is commonly referred to as an AVM (Automated Valuation Model). A simple way to test a lenders AVM computer is the Nationwide House Price index. Click here to launch (scroll to the bottom of their page).

Lenders have relied on these valuation methods since 2002. However, one thing the computer AVM’s can’t take into account is home improvements.

Here is a good example of one of our actual customers.

Mrs & Mrs Smith purchased their home in 2014 for £290,000.00 (South East England). A year later they started refurbishing their property, new kitchen, bathroom, flooring etc. In 2021 they had a loft conversion. The bank AVM is currently valuing their home at £422,000.00, which only represents natural house price growth in their region and property type since 2014. However, they believed their property was actually valued at £750,000.00 following a conversation with a reputable local estate agent.

We were able to request a fresh valuation with their existing lender and the surveyor agreed and valued their property at £750,000.00. This now meant any new deal products offered, in what is called loan-to-value (LTV), will show a much higher level of equity in the property and with it lower interest rates on the new deals offered.

Whether you go direct to your lender or use our service (same interest rates) it is important you stress test the lenders AVM. Obviously if the computer has it wrong, in your favour, it is best not to request a fresh valuation.