Borderline LTV on remortgage

ilnf

Hi.

My 5 year fix is nearly up and it is most likely we'll be remortgaging to a new company. Our house has lost a little value since we purchased it so we are still around the 90% LTV we started with (as we took out a 30yr mortgage, the capital repayments per month are rather small).

The problem is the LTV percentage, I have done some research using right move sold prices, mouse price, zoopla etc and our current LTV is varying between 89% and 93% depending on what information I use!

My question is, if I apply with a lender, will I get an actual visit from a surveyor to value my property and is there a charge if they decide my LTV is higher than 90%? Also, if they came back and said for example the LTV was 91% would that be the end of it or is their generally any discretion from lenders?

Ideally, I'd overpay before my current mortgage expires to ensure I'm below 90% but I'm not sure if I can afford that at the moment.

kingstreet

A surveyor is normally instructed to inspect the property when remortgaging, especially this close to the maximum loan to value.

If the property isn't worth as much as you think, you'll be offered the maximum amount based on the assessed value and this will mean you would have to put money to the remortgage amount to repay the current mortgage.

If you pick a product with no valuation, legal and arrangement fees, it will cost you nothing if it doesn't work out.

Can you find an attractive 90% remortgage product at a lower rate than your current mortgage's follow-on rate? Have you asked your current lender about its customer retention products, those available to existing borrowers not moving home?

ilnf

Thank you for the reply.

My lender is currently Santander and I've tried calling today but they don't want to speak to me until next week due to staff shortages (weather). I think I'm right saying the SVR is 4.74% which gives me a feeling their retention rates won't be too competitive. But I'd rather save the hassle of moving if I can.

The HSBC 4.15% 2yr fix appeals. Fee-free and will knock about £100 a month off my current payments.

biglugs

I would suggest ONLY looking at products with no arrangement fee. If you pay an arrangement fee and the valuer comes in with a value that puts your LTV over 90% you will likely not get the mortgage and lose your entire arrangement fee.

Annouck

Hi. I'd certainly take biglugs advice and look at a product with no arrangement fee. I received my valuation back last week and not only was it lower than expected, it was ridiculously lower than expected. If you said to me that the mortgage was withdrawn because too many people were taking it up and so they've asked for 'under-valuations' to stall everyone else out then I'd have to agree with you. So beware.

Thrugelmir

Annouck wrote: »

If you said to me that the mortgage was withdrawn because too many people were taking it up

Funds are limited for any product. This has always been the case. There are far fewer lenders in the market than 5 years ago.

Annouck

Thrugelmir: Thanks for stating the obvious.

terrencetrentderby

kingstreet wrote: »

If you pick a product with no valuation, legal and arrangement fees, it will cost you nothing if it doesn't work out.

Know ye of such a product?

_Andy_

biglugs wrote: »

I would suggest ONLY looking at products with no arrangement fee. If you pay an arrangement fee and the valuer comes in with a value that puts your LTV over 90% you will likely not get the mortgage and lose your entire arrangement fee.

Not if the fee is added to the loan