House valuation for re-mortgage

bargain_hunter25

Hi

My first mortgage which is a 2 year fixed 3.99% 85% LTV mortgage with Britannia is coming to an end in the next few months which will revert to 4.74% SVR. I have started to shop around to see what kind of deals are out there and I should be able to get an 80% mortgage if I overpay a little before leaving the current provider.

This may sound like a silly question but do I just use the purchase price of my house 2 years ago as the figure for how much it is worth and let them decide when they perform a valuation?

In terms of home improvements over the past 2 years, they have really just been cosmetic (new carpets, painting all rooms, garden improvements) and an updated ensuite has been fitted as the other one was falling to bits so we haven't really added any value i wouldn't expect.

The land registry does show a small reduction in house prices in the area over the last two years.

Any advice would be much appreciated

ACG

You can go off the pp when giving an estimated value, but the new lender will do their own valuation.

Thrugelmir

No harm in overpaying the mortgage if you can afford to do so.

kingstreet

Look at the sold prices for similar properties in your area in the last few months. That's what the surveyor will do for his comparables.

bargain_hunter25

Thanks for the info :-)

I have seen a good Nationwide mortgage, 4 yr fixed @ 3.79% 80% LTV which I am very interested in. My current mortgage expires on Nov 30th 2012.

Is it too early to apply for the Nationwide re-mortgage? It would be nice to avoid paying the increased monthly payment to Britannia from December. I am concerned this offer may go before November and I haven't seen any other mortgages that are better than this. I would assume any offer from Nationwide would be valid for at least a couple of months or maybe more?

Finally, if the house valuation comes back as inputted on the application I would need to overpay around £1500 to Britannia to qualify for the 80% deal with Nationwide, or can I just pay an additional amount to Nationwide to get me to the 80%?

Thanks in advance

kingstreet

You can safely apply for a mortgage now. Ensure you tell the solicitor that you do not wish to complete until the ERP expires on 1/12/12.

Nationwide offers are valid for three months for remortgage cases.

Borrow £1,500 less than you need to pay off Britannia when you apply to Nationwide. Provide the £1,500 to the solicitor before completion to ensure they have sufficient funds to repay the current mortgage.