Remortgage to get a better LTV rate

motch

I bought a flat a couple of years ago, a repo, for £75k, approx 85% LTV Residential Mortgage now on SVR

Now these originally sold new 2005ish for approx £200k, and a few must have large mortgages on these, a lot are BTL.

My Question is, can I get mine valued at a higher price to get a 60% LTV low mortgage rate?? eg a 5 year fixed sub 3% would be nice.

Bearing in mind the flats are all of a similar size/condition.

lee111s

If your house is valued at that then yes I can't see any reason why not.

A house is like anything else of value in the sense that if you get a bargain, it'll still be valued above what you actually purchased it for. I'm hoping for this on my property in a couple of years.

I bought of a couple who split up and got it for about 15k lower than the market value as they wanted a quick sale. Other identical houses in the street/estate sold or are up for sale for £130,000+.

kingstreet

motch wrote: »

I bought a flat a couple of years ago, a repo, for £75k, approx 85% LTV Residential Mortgage now on SVR

Now these originally sold new 2005ish for approx £200k, and a few must have large mortgages on these, a lot are BTL.

My Question is, can I get mine valued at a higher price to get a 60% LTV low mortgage rate?? eg a 5 year fixed sub 3% would be nice.

Bearing in mind the flats are all of a similar size/condition.

You can try. The surveyor doing the valuation will use the recent sales of similar property as comparable evidence to value yours. Check what he will see and estimate accordingly.

JimmyTheWig

You might have to pay for a physical valuation, as they might just want to do a desktop valuation on it - i.e. you paid £75k a few years ago so it is now worth £x.
But probably worth it, anyway.

motch

kingstreet wrote: »

You can try. The surveyor doing the valuation will use the recent sales of similar property as comparable evidence to value yours. Check what he will see and estimate accordingly.

That's the issue. I paid £75k a couple of years ago, all other flats paid around £200k (2005 ish), perhaps some were repo'd between those dates but don't show up on rightmove.

So the only recent data is mine, £75k, but some others will have £100k+ mortgages and possibly some of those at the best 60%LTV for a lower/better mortgage deal.

If an average was taken of all flats i'd have no problems, but if the most recent is taken (mine) then no chance.

motch

motch wrote: »

That's the issue. I paid £75k a couple of years ago, all other flats paid around £200k (2005 ish), perhaps some were repo'd between those dates but don't show up on rightmove.

So the only recent data is mine, £75k, but some others will have £100k+ mortgages and possibly some of those at the best 60%LTV for a lower/better mortgage deal.

If an average was taken of all flats i'd have no problems, but if the most recent is taken (mine) then no chance.

I've bumped this post hoping someone could shed a bit of light for me.

Thrugelmir

Look at sold prices on Land Registry to get a better picture. May well have been incentives from the developer in 2005 which may have inflated the true values.

kingstreet

Pick a fee-free product and apply, putting down your best estimate of the current value. You'll then be able to see if the surveyor agrees with you, or if he values it lower.

It will cost you nothing if you decide not to proceed.

JimmyTheWig

Or phone up your current mortgage provider and see what they would do about a valuation.

motch

JimmyTheWig wrote: »

Or phone up your current mortgage provider and see what they would do about a valuation.

I would probably aim for a different provider for remortgaging, ideally with no or very low booking fee. Current provider has some low 5 year rates but at least £1000 boxing fee/evaluation.

countrygirl27

Hope people may be able to clear up a similar query for me.

Bought summer 2012, house for £171k, mortgage is for £145k.
Currently with nationwide on a 2 yr fixed deal.
Our house is a 'doer-upper' other houses in the same row have sold for £200k in past year.

Was hoping that when fixed deal ends, would be able to remortgage, thinking that hopefully house would be valued at £185+ and would only owe £140k ish to mortgage.

But confused when looked on nationwide site as it says that they will value it and then choose between the valuation and the purchase price, then base the new mortgage on the lower value. This would mean that the increase in the value would not be of any benefit to me at all....

or have I misunderstood?