silly question but mind gone blank

Inforapennyinforapound

A relative has a fixed mortgage coming to the end of its term and is looking for a decent deal(the fix was quite a high rate).

Anyway i have been researching deals for him and i know what he needs to borrow i.e i know the amount of mortgage outstanding.

The problem i have is that there are different deals regarding Loan to Value and obviously there are better deals for 80% than 90% LTV for example BUT who exactly values the house? Does he tell them its current value or does he have to get in an Estate Agent or is it down to the institution loaning the money to value the house?.

How cam ny relative go for a particular remortgage if he doesnt know the current value so he can work out the LTV....I'm going round in circles here.............

Thank you in advance for replies,which i suppose will be obvious once i know the answer but cant see wood for trees at moment.

Senior_Paper_Monitor

The institution lending the money will send a surveyor who reports to them - no other option.

If the LTV is marginal and upfront application fees/valuation costs involved we woudl always select a lender with an acceptable fall back option available to higher LTV.

Mummy_Jo

When we had our house valued for our mortgage it was valued at £50k less than market value. It didn't alter our mortgage though as the value was fine for what we wanted...

I have heard of people questionning it and having it revalued if it makes a difference.

I am sure some of the rather clever people on here will provide more info in time.

I hope you get it sorted though

Inforapennyinforapound

Senior_Paper_Monitor wrote: »

The institution lending the money will send a surveyor who reports to them - no other option.

If the LTV is marginal and upfront application fees/valuation costs involved we woudl always select a lender with an acceptable fall back option available to higher LTV.

No offence meant here,but i didnt follow the bit in bold.What are you actually saying?By the way the LTV WILL be marginal(in fact i reckon there wont be a margin,so he will probably have to stay with same lender and hope there is a better rate i guess)

Senior_Paper_Monitor

If you select a lender that has an acceptable option either side of the LTV cut-off (and who allows such switches at the relevant stage - most do) then you apply for the lower one and simply switch if the valuation screws up the first option.

Alternative is to select a lender who doesn't charge if valuation doesn't come up to scratch.

Risk with first option is that product change occurs between application and valuation result - a swift properly document supported application and max pressure on lender to process (having checked current processing times) is vital.

All the above is just what a good broker does for you - based on experience and a wide range of multi lender information available on purpose designed sustems.

Wh05apk

Inforapennyinforapound wrote: »

No offence meant here,but i didnt follow the bit in bold.What are you actually saying?By the way the LTV WILL be marginal(in fact i reckon there wont be a margin,so he will probably have to stay with same lender and hope there is a better rate i guess)

If you feel the LTV will be marginal then do not pay any up front fees, Valuers are harsh on remortgages (and people always think their properties are worth more than they actually are) so if you estimate say 77% now, once valued it could easily be over 80% where rates will be much higher.

getmore4less

Start with the follow on rate and the lenders current options.
you could ask them they often value from tables so can tell you which option they will allow.

These are the benchmarks for looking at other deals with other lenders.