Remortgaging LTV query

XBell

Hi, When remortgaging, is the LTV calculated with the price you bought the house for, or the current market price of your house??

I have the feeling it must be the current market value?

Thanks
Xinpei

Myrtle0204

Hi,

e are in the process of doing it at the moment and our bank used their estimation of the current value - they had two systems to work it out - one of which came up at 30k less than the other!!!

beecher2

Current market value, and be prepared for it being a little lower than you might think.

XBell

30K oh dear...... That will make a lot of difference to our house (bought at 135K). Hmmmm I am just thinking if we should go on another fixed when our 2 year fixed runs out early 2011.

Can we just ask for a valuation of our house from anyone or will it be from the mortgage lender?

loubel

The mortgage lender will do their own valuation.

beecher2

When did you buy and how much is your outstanding mortgage?

Your lender would do the valuation rather than yourself but you could appeal if you have strong evidence against it.

Depending on your loan to value, you could always go to a different lender.

XBell

Bought Feb 2009... Outstanding will be £110608 at end of 2 years (Feb 2011) We at in NE england so prices not so volatile.... My colleague recently bought a similar house to ours in our area for £160K though so I'm curious what ours will fetch.

Are estate agents' valuations accurate? Or lenders' will be usually lower than agents?

beecher2

Put your details in here
http://www.nationwide.co.uk/hpi/
and see what is says.

estate agents will overinflate figures when they tell you what they can sell it for. Maybe worth asking your lender what they value your house at presently?

Myrtle0204

Ours lenders valuation is about what an EA told us a year ago - we are in Yorkshire :0)

Myrtle0204

I just did the nationwide calc on ours and its about 5k out from what our bank says - the bank is higher :0)

Emmala

The mortgage company will use their own surveyor who will base the valuation on the house as it is on the day they visit, eg we are in the middle of extending and our guy refused to value the house as it will be when it's finished (with a 4th bedroom and 3rd reception) and insisted on valuing it as it stands in the middle of the building works. Frustrating but that's the way it is.