LTV question and staying with same lender

manikm

Ive recently gone to a lifetime tracker, i was thinking, IF fixed rates come down in 2 yrs or so, and I want to switch to another product (no penalty) with either the same lender, OR another lender...

How does your existing lender work out your LTV? do they base it on what you were orginally classed as when you got the original deal (90% LTV) or whatever it is on the day - if the value has gone down, and therefore more than 90% LTV, would i not be able to get one of the lenders fixed products? and therefore have to stick with existing deal?

opinions4u

Different ways of doing it.

If staying with the same lender, most will use a typical postcode indexing methodology to gain an estimate against the original valuation.

e.g. bought house 2 years ago, valued at £100k. Mortgage debt £90k ... 90%

12 months later value was up 10% - now £110k. Debt £88k ... 80%

Today, prices down 13% on the last year - value now £97,345. Debt £85k ... 87%

Alternatively, they may simply request a revaluation at your expense. When remortgaging to a new lender, this is the most likely.