Mortgage deal coming to end - value of property?

jasminebro2

We bought our first house 3 years ago, and the current mortgage deal runs out so I am shopping around for a new mortgage. What I am a bit confused about is do you need to have your home revalued if the value has increased? Or who decides what is a reasonable current value? I know roughly what the current value should be and as it's increased quite a bit from when we bought the house. I'm thinking of staying with the same mortgage company but want to get the best online deal - so not sure what to enter for property value - whatever I think is the current market value?

kingstreet

If you ask your existing lender for a customer retention product, it may not matter about the current value. However, some lenders do calculate the current value using a desktop indexed valuation system.

Make sure you look at products for existing borrowers not moving home. Remortgage products are for new borrowers moving their mortgage to the lender.

You may be able to pay for an inspection of the property if you think the value is higher than the desktop estimate.

Alternatively, you could consider a remortgage to a new lender yourself. There are many products where the transfer costs are nil, so the only potential cost may be the final fee payable to your current lender on the closure of your current mortgage. In this case, you would put an estimated value on the application and the lender's chosen surveyor would agree, or disagree, with that on the inspection visit.