Valuation for re-mortgage

Telhearne

Hi All,

Mortgage required - £167,000
Purchase Price - £250,000
Current Value - ???

I will be re-mortgaging for the first time when my current deal expires 3rd Feb 2014. I purchased the property back in Jan 2011 from new for £250k.

When re-mortgaging I am fully aware the main thing lenders will be interested in is the LTV. I have looked at Zoopla who currently value my property at £265,000. I am sceptical of this valuation as next door (exactly the same house) has been valued higher (because they paid a higher purchase price).

This means that I am not sure what mortgage to apply for as I do not know what LTV I have. Where the development is new and there are only 4 properties the same it is very hard to find comparative sale prices.

I therefore have the following questions:

1. If I was to apply for a mortgage with an LTV of 70% but the lender values the LTV at 80% do I lose the valuation fee or can I apply for another mortgage with that lender (on the basis of 80% LTV)?

2. Is it worth getting an estate agent to value the property (I realise this will be higher than a lenders valuation) to get a better idea before applying?

In a nutshell I am looking to re-mortgage to HSBC who I know are very conservative with their valuations – especially new builds. I just do not want to be in a situation where I pay all the fees and not be able to get a mortgage.

Cheers

lvm

I'm with Halifax and when I was on the phone to them, asked if they could tell me what they would "value" my property at. They said they had an "index value" of £xxx,xxx.

I'm not sure how much that would have to if it actually came to remortaging though.

A friend had asked for a payment holiday in the past - as they had estimated her property value at ??%, they refused the holiday as her LTV was too high.

So your current lender may be able to help at this initial stage.

GMS

Look for comparable sold properties in the last 12 months. This should give a better idea.

Try rightmove, nethouseprices etc