Remortgage - How to calculate LTV?

kasu_78

Hello,

Apologies if this has been answered earlier...

I understand how to calculate LTV for a first time mortgage but when we are re mortgaging do banks consider the positive equity in the property?

Say I bought my house at 320,000£ and now it is valued 350,000£ and my outstanding mortgage is 220,000£. I'm bit confused here how to calculate the LTV. Upon searching the internet, I found LTV is defined as loan amount divided by appraisal amount which means it would become 220,000/350,000 = 62.85%. Does this mean I can apply for re-mortgage products which has 65% LTV without actually giving any deposit? Am I that lucky

i'm sure i'm getting something wrong here....

appreciate any suggestions.

Thanks :wave:

opinions4u

Current debt / current value (as determined by a lender's valuer).

So if the lender's valuer agrees that it is worth £350k, you are looking at a 63% LTV.

Thrugelmir

What are you basing the current value of the property on?

Your lender will have a surveyor value the property as part of the mortgage process. This may differ to the value you think it is.

kasu_78

Thrugelmir wrote: »

What are you basing the current value of the property on?

I have used private websites like mouseprice.com and zoopla.co.uk to know the estimate of appreciated value. I am aware of the fact that the lenders do have their own criteria. By any chance does any body know of any standard that lenders use for evaluating a property?

ta