Who determines the LTV?

roscolabri

Hello,

I bought a property back in August 2007 and it cost £280k, 28k was a deposit and £252k was the mortgage. So I guess that it was a 90% LTV with Abbey.
However, I'm now really confused as to what my LTV will be and who decides it.

My current mortgage deal runs out in July 09 and I have £224k left on the mortgage (I paid 10% off early this month). I will be able to pay off another 10% when my deal ends, so for arguments sake lets say I need a mortgage of £215k. Who comes and values my house, would it be the bank that I want to remortgage with or can I get an estate agent to value the property?

The main worry for me is that because the house prices are dropping, my LTV would be getting worse. Obviously if the house was still worth 280k then that's fine, as I could possibly try and get a 75% deal, but that isn't going to happen because I bought at the top of the market in the South East.

One other query, I have a 1/3 of my parents house, whom died last year. The house is mortgage free and last year was worth around £300k to £310k. Again, I realise it wouldn't be worth as much as that now, but would it be possible to convince the mortgage lenders to give me an even better deal because of this other house that will be sold at some point within the year, potentially giving me 70k to 90k to dump on my mortgage?

I'm rambling on now, so if anyone has any opinions I'd be glad to hear them.

Thanks

Conrad

Typicaly your existing lenders uses an automatic valuation model to electronicaly determine the value and thus the LTV.

If you switch lender, a physical valuation is likely to be undertaken by a valuer appointed by the lender. It is usual for valuers to speak with local agents as part of thier investigation.

My gut feel is you will be under 75% what with having redeemed 20% by completion.
Best of luck.