fixed deal ending, valuation question

liteplay

My fixed 2-yr rate will end May 2014 and I started to do a bit of a research to figure out what my options were - staying with the same lender vs. remortgaging. I'm trying to determine what the value of my property is now (just for the sake of calculating various options) and I don't know what to input.

Original purchase price was 260K May 2012.
Mortgage balance in May 2014 - when fixed rate deal ends - will be something like 210K. Lender is Halifax

Now on value...

Zoopla shows 282.5K (I wish!)
Land registry index calculator shows 275.3K (borough-level data)
Lloyds house price tool shows 267.3K (data based on Greater London, not borough level)
Most recent sale in my building - of a similar flat - was 262K in December 2012

Any suggestions on how do I determine the LTV? I do realize the lender will do their so called desktop valuation next year - and was wondering it would be close to the land registry one or not.

In the example above, Llyods data that is available doesn't go very granular... only at Greater London level, but I'm thinking maybe their desktop valuations would be based on smaller areas (like borough or postal code or whatever...).

Thank you.

Dave_the_Ginger_Cat

OK, let's assume your mortgage balance is much the same.

If your value is the same you're just over 80% LTV, to get to under 80%, your value would need to be over £262.5k, and 75% it would need to be £280k.

I don't think it would be unreasonable to suggest £262.5k or £263k as a value. Much will depend on what the market does between now and then. I'd go with 80% myself unless you have the opportunity to reduce the capital by 5% to be more certain

liteplay

I believe 263K next year is too low though.. based on the land registry index (or even the Lloyds one). Well, assuming that things continue at a similar pace... worst case scenario would be 80% and best case scenario 75%?

I am actually trying to determine what kind of overpayments would bring me to 75% by May 2014 but I guess I've no way of knowing until early next year.

Thanks.

dimbo61

If you read the T&C,s of your mortgage deal can you check if overpayments are allowed?
Many fixed rate deals still allow 10% overpayment each year.
If you can overpay every month as this will save you your Interest rate TAX FREE.

liteplay

Yes I'm allowed up to 10% but I can't overpay that much. I'm overpaying monthly and I'm trying to figure out by how much I should increase... and there's also a bonus coming up etc.

somethingcorporate

Just assume the price hasn't changed, safest option.

You've not had it long and I think when calculating your overpayment aim to err on the side of caution assume it would not have changed materially by the time you come to remortgage.

liteplay

somethingcorporate wrote: »

Just assume the price hasn't changed, safest option.

You've not had it long and I think when calculating your overpayment aim to err on the side of caution assume it would not have changed materially by the time you come to remortgage.

In this case I should get the balance down to 208K so that I'm at 80% LTV. Not very optimistic

But my question was a bit different... in the example above, what do you think is usually the closest to the lender's valuation - is it the land registry one? Does the lender go more granular than just 'Greater London', in their internal systems?

Thrugelmir

liteplay wrote: »

In this case I should get the balance down to 208K so that I'm at 80% LTV. Not very optimistic

Lenders valuation will err on the side of caution. Quick sale as opposed to 9 month months waiting for the right buyer to come along.

Unless the property is worth well clear of £270k. Then may well default back to £250k, the ceiling for 1% stamp duty.

So your original purchase price appears a sound basis to work on.

amnblog

You are about 9 months too early to worry about this. A lot can happen in the mortgage market between now and then.