Remortgage - valuation advice needed

Laura565

Hi, my partner and I have the chance to re-mortgage earlier than we had thought as he is now eligible for a staff mortgage with his employer. Although we will have to pay an early repayment charge we may still save money over the next year with a significantly lower interest rate.

I am confused as to how the valuation process works.

We bought our house in September 2009 for £80000. We borrowed 95% (£76000). We still have £74000 on the mortgage (and 1.5 years left on our fixed rate).

I think we need to be below the 90% LTV to qualify for the new mortgage.

How would our house be valued now? Would the new company do a new valuation, or use the original one? We have done a fair amount of work on the house since we moved in which should have added some value.

Our valuation was obviously £80000 for our original mortgage, because thats what we bought it for, although it was on the market at £85000 at the time.

I guess I want to know if there is any chance the house could be valued at £85000 now so that we had nearly £10000 equity in it to qualify for the new mortgage.

Any thoughts would be appreciated!

Thrugelmir

A word of caution. Staff mortgages are treated as a benefit in kind by the tax authorities. With interest rates at exceptionally low levels there are occasions when opting for a preferential staff mortgage is not advisable.

So investigate your own position carefully before proceeding.

dimbo61

If you dont know what your home is worth how are we to guess!
Not sure the idea of paying a ERC and hoping the the property has increased in value during the last 2 years to get a staff mortgage at a better rate will work!
Better right now to overpay the mortgage while on the fix and see what rates you can get in 18 months with hopefully 10% equity

Dorastar

We are in a similar posititon but with different figures - we have decided to hold out for the time being as our ERC is ridiculously high. We are making small but regular overpayments to try to bring the mortgage down in the meantime.