Remortgage time! My house has gone up in value!

Sm1thers

Hi there iv searched for an answer for my question but can't find one anywhere and so I'm hoping somebody here will know/ be able to help.
Right I'll start from the beginning. Me and my partner bought our first house nearly 2 years ago for 65k. The value reflected the condition of the property at the time as it was completely run down. We have since completely gutted the house and re plastered, wired, plumbed and just generally improved the whole house. Which has improved the value significantly based on the fact that ours is a 3 bed end terrace with a cellar and the mid terrace 2 bed without a cellar next door but 3 has just sold for 90k, that's at least 25k difference.
Now here is my question, we are due to remortgage in the not too distant future as our 2 year fixed rate deal is nearly up. At the time of purchase we had a 90% LTV meaning the mortgage on our 65k house was only for 58.5k.
Now based on the fact our house is worth a lot more than when we purchased it, if we were to remortgage would our LTV come down? Say to 60% which I know gives you more choice then on mortgage deals, better rates ect.
Am I correct in thinking this way? If so I presume I would have to have the property re valued to satisfy the new lenders? What would be the best method of going about re valuing?
Finally if all the above presumptions are correct is it worthwhile me persuing this further??
Cheers Paul.

Toonsy

Assuming everything is as you said all that would happen is that whichever mortgage company you choose to go with will send round a surveyor to value the house to make sure it is worth what you are wanting to borrow which doesn't sound like it will be too much of an issue, even if they decide to undervalue your house.

rd07

I've applied for a remortgage this week. After taking out an 80% mortgage initially, I was hoping the combination of buying the property at a very good price from the developer and overpaying as much as possible would mean we would benefit from the lower LTV rates.

The mortgage we are going for is with First Direct which has a max LTV of 65%. They asked me how much the house was worth etc - I explained we got it cheap, but don't know what the value would be, so they used the purchase price for this question.

After going through lots more questions, the lady I was speaking to said that they would try and avoid a valuation fee where possible as they can run properties through a search to get estimated values etc. These aren't always available for all properties, but fortunately it was for us, meaning we don't have to wait (or more importantly pay!) for a valuation.

Just thought I'd mention that they won't always need to send someone out to value it.

Yorkie1

You can sometimes pay extra for a surveyor to inspect the property, rather than them having a drive-by or desk-top valuation.