Getting a better LTV

necronaut

I read the remortgage guide but I don't feel it covered this issue.

I bought the house 2 years ago at 155k when it was on the market for 165k.

Now we've had an estate come round and said we should put it on the market, you should ask for 199k-220k.

I'm about to remortgage and hoping to get a better LTV since the house has had improvements made. If it gets valued in this new bracket I could get a 65% LTV. Would the mortgage valuation be a similar figure to this estate agent one or is it calculated differently?

kingstreet

The EA marketing figure is likely to be nowhere near the actual value. They are trying to get your business, thinking you are going to sell, so they will tell you what they think you want to hear.

Surveyors use comparables to value property. I suggest you find examples of similar property to yours which has sold in the last 120 days within 0.5 miles of you.

http://www.rightmove.co.uk/house-prices.html/svr/3114;jsessionid=DCFB4C2F875F9D4319150C7716D27CCF

Ideally, try to find three, then take an average.

Are you going to remortgage, or are you going to ask your current lender for a customer retention product?

necronaut

Cheers, that's got me a realistic value. I'm in two minds at the moment. My ex-missus is moving out so i'm doing the transfer of equity forms but there's only 2 months left on this mortgage before the bonus period ends. On the other hand I could remortgage in August and spare myself the cost of the transfer of equity process...

kingstreet

Remortgage or existing lender, you'll still bear the legal cost of the TofE as no lender I know of includes that in its "free legals" offers on a remortgage.

necronaut

Well the mortgage company will charge me an admin fee of £190 for TofE i think.

kingstreet

Yes, but you may pay other fees on the remortgage instead.

As the legal costs are typically the highest part of the costs of a TofE, around £350 to £500, those are the costs you cannot escape whether you go back to your existing lender, or a new one.

necronaut

I sent off my TofE shortly before my mortgage financial advisor that arranged my current one rang out the blue. He said I should try and seek to cancel the £190 admin fee I just sent because that cost could've been combined on the remortgage amongst other fees and saved money.