value of house

repoman123

Hi everyone,

I have a quick question regarding remortgaging and house values please.

My wife and I were first time buyers 2 years ago and our existing 2 year fixed term deal is expiring soon.

My question is, if we decide to move to another lender and remortgage, how is the value of my house determined? I have to enter a house value when I'm obtaining quotes but isn't this a little subjective?

Is it just the value that I paid 2 years ago? Since then we have decorated the whole house and I think it's worth a little more now, also at the time I feel like I got a good deal and paid under what I think the 'market value' of the house was (again subjective I know).

I ask because I quickly learned that the better your LTV is, the better rates you're offered!

Many thanks in advance as always!

WestonDave

Have a play with the house price gadget on the Nationwide site - that will give you a good indication of where house prices have moved in your area. As a base that is probably where lenders will start - many will only do a desktop valuation unless its borderline either acceptable or borderline for a product band in which case there will be survey fees.

southantrim3

Check online to see what similar houses on your street are being marketed for - also, what price do you insure your house for re house insurance? Both good guides.

What you think it's worth is of no real significance as property prices (unless you're in London) have dropped on the whole...

Thrugelmir

repoman123 wrote: »

Since then we have decorated the whole house and I think it's worth a little more now,

Another person may wish to redecorate entirely. Expenditure on items that relate to personal taste don't add necessarily add significant value.

repoman123

All good advice and a couple of great starting points.

Many thanks you guys.

kwmlondon

Good question. If someone's property has gained significantly in value over a couple of years and they claim a better LTV rate when they re-mortgage how is that assessed? Do you just fill in the forms and then a surveyor goes out to the property and says "yeah, it's worth that much" or "nop, not a hope." is that it?