Remortgaging - Current Property Price & LTV

Ollie_D

Hi All,

My current fixed deal is due to expire shortly and I am looking at to enter into a new fix.

Clearly my LTV will have a large input on what the best deal I can get is, and since owning my property I have made some vast improvements which should have increased the value.

In short what I'd like to know is if I sign up for a deal based on a 85% LTV (using purchase price)and then following the lenders valuation it turns our my LTV works out to be 80%. Is there a way of transferring to a different deal based of this new LTV.

Hopefully that makes sense.

Any help you can provide will be appreciated.

Ollie

kingstreet

Wouldn't you apply for the 80% product, then change it to a worse one if the property was valued at less than your estimate?

Ollie_D

kingstreet wrote: »

Wouldn't you apply for the 80% product, then change it to a worse one if the property was valued at less than your estimate?

Thanks for the reply, yeah I suppose it work that way round as well.

Does anyone have any experience of doing this either way round? Does it involve paying two lots of product fees?

Ollie_D

Anyone have anything further to add?

kingstreet

Are you going back to your existing lender for a customer retention product, or are you looking to remortgage?

Assuming the latter, you complete the remortgage application and you put down your estimate of the current property value. The lender's surveyor looks at comparable sales (sales data of similar properties within 0.5m in the last 120 days) and agrees or disagrees with your estimate based on that.

If the valuation agrees, you get your product.

If the property is downvalued and it puts you into a higher LTV band you would then have to pick a new product. What happens to the fees you have paid will depend on the lender. Plenty of remortgage products are fee-free, failing that go for one where you can add the fee on completion. Once it's completed, pay it off within any allowed penalty-free overpayment allowance.

Ollie_D

Thanks for the reply, it was a remortgage I will be looking for.

I'll scrutinise the figures and if it looks like it might be very close to the LTV for the deal, I probably wont risk losing the fee, but as you say if it is fee free then whats to lose.