How do valuations for remortgages work?

MJS996

Hi

This has probably been covered before, but this is the situation. I bought my house 2 years ago and I'm coming to the end of a 2 year fix.

I would like to go for a 5 year fix if possible, but the better ones require a LTV of 65%, whereas others only require 75%.

I'm confident that I'm over 65% LTV so no point looking at those, but is there a way of getting a rough idea what sort of valuation a new lender will come up with? I don't want to go through the process of applying for a 75% ltv mortgage only to be fail on the valuation.

For what it's worth, the mortgage I need comes in at 3.25 x my salary, my outstanding mortgage comes in at 66% of what I paid 2 years ago - the question is, how much is it likely to have dropped

Any help would be appreciated.

Also, looking at either Natwest 5yr, 4.69%, #299 fee, or A&L 5yr, 4.89%, no fee - are there any other good deals out there?

Thanks in advance
Martin

betmunch

Check out your house on zoopla.co.uk (might be .com) and that will give you a a good guide to the value of your house now.

Otherwise ask an estate agent to do a valuation for you, but make sure you get market price and actual selling price, then probably knock a bit off the selling price to be safe.

Cheers

Scaredy_Cat_3

I'm in a similar position - we bought our house 2 years ago, and our fixed rate has just ended so I've been shopping around for new deals. Our valuation came in at just under 30k LESS than we paid for the place 2 years ago. I think that's a drop of around 15%, if that helps.

I've been told mortgage companies generally are valuing cautiously and a drop of 15% is fairly typical.

opinions4u

MJS996 wrote: »

I'm confident that I'm over 65% LTV so no point looking at those, but is there a way of getting a rough idea what sort of valuation a new lender will come up with?

Try Nationwide's handy little tool.

Also, looking at either Natwest 5yr, 4.69%, #299 fee, or A&L 5yr, 4.89%, no fee - are there any other good deals out there?

https://www.moneysupermarket.com/mortgages might be worth a play.