LTV & End of Fixed Term

skinnylove

Hello
Sorry if this has been asked before, but a quick search didn't yield me any results.

We brought a property for £131,000 earlier in the year with a 20% deposit. We are currently on an 80% LTV fixed rate mortgage with Nationwide for 2 years.

My question is, when we come to the end of the 2 years, and decide to take on another fixed rate mortgage with Nationwide (as long as it's competitive), would they continue to base the value of the house on the amount we bought it for i.e. £131,000. Or would they re-value it again? It's a new build so I'm aware there can be some depreciation.

The reason I ask is, if we make approx £1700 in overpayments in this 2 year period, we should make it into the 75% LTV bracket and therefore reduce the interest rate. However that will not be much good if they then decide the house is only worth £125,000 after two years and therefore still at 80%.

Thanks

Yorkie1

They will do a re-valuation, which may be done from a desk, a drive-by, or formal inspection.

gazter

Yorkie1 wrote: »

They will do a re-valuation, which may be done from a desk, a drive-by, or formal inspection.

and may go up or down....

skinnylove

Hmmm okay. Thanks.