Valuation help.

littlemiss1986_2

Hi,

Just a quick question for someone more knowledgable than myself! We currently have a mortgage with Santander. It is fixed until summer 2012, when the time comes to re-mortgage do they revalue the house? Or if we switch to a new provider will they? I ask because we purchased the house for £150,000 in a bit of a state and have done alot of work on it. It's in a terrace of near identical houses and one two doors up (which doesn't have an attic conversion) has just sold for £165,000. Assuming the property market doesn't slump too much I'm pretty sure ours would be valued at £160,000 atleast. Would this be reflected when we come to remortgage or will they use the purchase price?

I'm interested because we're desperatley trying to get the LTV down to
75% with overpayments and obviously the house being valued higher would help our case! Many thanks in advance for anyone that can help.

dimbo61

well next summer when your current deal runs out you will go onto whatever your mortgage reverts to in the paperwork ( SVR ? which is I think 4.24%) or maybe a tracker deal
So read the paperwork and dont forget its could be a couple of years old!
What to do then is see whats available in the mortgage market

littlemiss1986_2

Hi, thanks for your reply, yes we revert to the SVR next year but when we look for another fixed rate will they revalue the house? Or if we change to a different lender will they? Or just use the orginal purchase price to calculate the LTV?

kingstreet

littlemiss1986 wrote: »

Hi, thanks for your reply, yes we revert to the SVR next year but when we look for another fixed rate will they revalue the house? Or if we change to a different lender will they? Or just use the orginal purchase price to calculate the LTV?

Your current lender will have products for existing customers which will probably assume the value when you bought, or will be based on a computerised valuation model. If you remortgage to a new lender it will probably carry out a new valuation to satisfy itself the property is worth what you say it is and is suitable security for a mortgage.

james01_2

Any new lender will revalue you home so that they know the true value of your home and if you remortgage with the same lender they should do the same.
If the do come up with a lower than expected valuation due to them not visiting the property you can challenge this and ask them to visit which some lenders may charge you for but could be worth it if you know your right and it gets you into a better LTV bracket.

littlemiss1986_2

Brilliant, thanks alot guys, puts my mind at rest a bit!