Property Surveyors are running scared. Having seen hose prices dive by up to a third, they are covering themselves by taking a conservative value and then knocking off some more.

This can be devastating for some applicants. The ultra low valuation cuts the value of equity they will own in their house and this can result in the mortgage company pushing up the interest rate they are charged and this can cost them hundreds of pounds every month. And in some cases it can even result inn their application being refused.

So if your Surveyor knocks down the value of your house, contest it. Remember, you must accept that prices have fallen but if the value still comes in well below what you think it’s worth, complain. To get anywhere with this, you’ll have to base your estimate on facts not just your annoyance – and remember, if another surveyor has to come out, that’ll be another set of survey fees! But if the low valuation has pushed you into a higher interest band with your lender, it might be worth it.

One of the results of the credit crunch has been the big difference between the interest rate charged to those with just 10% equity as against those with much more. If you have 40% equity you could currently get a 2 year fixed mortgage for just 3.34%; with 25% equity the rate rises to 3.99%; and it’s 5.99% for those with less equity. This 5.99% rate pushes up the monthly payment for a typical £150,000 mortgage by £205 per month.

But as we’ve said, if you do appeal against the valuation you’ve been given, do support your claim by reference to the size and character of your house in comparison to other houses which have been sold recently in your area.