Potentially about to remortgage - Query

agile83

Hi guys,

Was wondering if you could give me a helping hand or point me in the right direction with a few queries i have on remortgaging?

My current fixed rate deal - 4.24% - ends on 30th Sept 2011 followed by a tracker for life of BOE rate plus 3.74% which handily at the moment would also be 4.24%.

I owe £87,500 and can only guess that my home is worth around 100k to 105k having bought it it November 2007 for 116k.

Im unsure as to how a potential new lender would value my property so wouldnt know whether I was wasting my time speaking / arranging things with them if they valued my house at say 75k for arguments sake meaning we had both wasted each other's time. Ive refitted the kitchen and bathroom in the time we have lived in the house but understand that lenders use a redemption or repossesion value (not sure which) to work out how much it is worth? Please let me know if im wrong on this.

Upon googling this all i get is to check Zoopla and other websites but this doesnt seem accurate and surely lenders dont use those exact figures?

If i can work out how much my house is worth, or rather the lower figure a lender will value it at, then I can work out how much money to move from savings or possibly borrow from a family member to put into the mortgage via an overpayment in order to get the LTV to be 85% or 80% if i am close. Does this make sense?

Look forward to help with this - any other info needed please do let me know, cheers

kingstreet

Lenders use a system called HomeTrack. You can pay for a HomeTrack valuation for about £20. Also, look at the properties that have sold nearby for their agreed prices.

You can put the postcode in here https://www.houseprices.co.uk but avoid the link at the side as that takes you to zoopla!

At the amount you're looking to borrow, you're likely to be better off with a fee-free deal, rather than a cheap rate with big set-up costs. On this basis, you're not risking anything by applying. If you don't get the valuation you want, you can reconsider without a cost.

Have you asked your lender what retention products it has available? It may be better to stay with them if they'll offer you something good.

LoopyPrune

Im in the same boat. Im right on the boarder of the 60% LTV market and it basically comes down to a few thousand either way. If I take the Zoopla figure which is £63,000 Im within the 60% bracket. But their figure seems to be based on only 6 sales in my street all of which were before 2006. The only figure I have for certain is the council right to buy valuation from May 2006 at £50,000 from which I got a £16,000 discount to leave me paying £34,000. The council have now removed their charge and Im currently on £33,500 (had a mppi policy and fees added at the start which Im talking to the FSCS about hopefully getting the mppi returned)

We have installed a new heating system top to bottm for £4k and a brand new fitted kitchen plus replastered throught the whole house. A new bathroom is getting fitted this year.

Tried local estate agents but nobody can give me a figure or seems interested which is understandable as I dont want to put it on the market.

agile83

Thanks very much for your responses so far . I have been checking houseprices.co.uk quite regularly as there have been a few houses up for sale and then appears they have been sold, however the last houses to appear on the site are mine and a few others from 2008!

I must admit i do need to get round to calling my lender to ask what deals they have and will see what they can come up with - ( Alliance & Leics / Santander)

My current rate isnt that bad by any means however something a little lower would always help and mean i can overpay that slight bit more!