Re-Valuation

gra01473

My 2 year deal ends this summer, we have worked on the house increasing it's value so would you advise we get it revalued before renewing the mortgage which I assume would reduce the LTV?

If the answer is yes who does the re-valuation?

Thrugelmir

The lender will employ a surveyor to conduct the valuation on their behalf.

holly_hobby

As above, the lender instructs a surveyor from their panel.

Hope this helps

Holly

Savvy_Spender_South

So does that mean, for example:

Purchsed 100k @ 85% LTV so Mortgage 85k initialy.

over the 2 years you pay about 3k in capitol so should owe 82k on remortgage, still 85% LTV near enough.

But; as you built a conservatory and new windows, independant valuers rate it at 120k now.

The bank should then give you 82k against 120k which is a better 60% ish LTV and therefore a better APR.

Will this work, or will the bank revert to its earlier calc of 100k unless you go elsewhere?

bigadaj

It would in theory act as you say, though different lenders and surveyors will have different numbers. Also surveyors will value conservatively, whereas virtually very homeowner over values their property.

This is probably only worthwhile if you are confident that you can dip below a specific ltv, reducing it by at least 5% or even 10%.