Confused about remortgage.

SUPERLOOPY_3

Hope someone can answer this. I've just been on Nationwide site to check on remortgage facilities. There is a column headed 'Deposit required' which is 10%. Is this a cash deposit ie do i have to have that money upfront or is the fact that it quotes 10% mean that they are only lending up to 90% of the house value. My own personal circs are £45k to be mortgaged against house value of £225,000. I'll be gutted if i need to find nearly £5k before i can remortgage. Tell me it isn't so ... pleeeeeeeaaaaaassssseeeeee!! Am i just being a dope ...

Tom_Saunders

yes you are being a dope.

They will lend upto 90% of the value of the house, your deposit is your equity

SUPERLOOPY_3

For once i'm happy to be a 'dope'. Phew, many thanks!! Should be plain sailing then, only about 20% of house value needed. Do they come and inspect your property for 'worthiness' or am i living in the dark ages. Someone i know said that his application was more or less a 'drive by valuation'. He never saw anyone and thinks that they use the council banding these days (i'm in a band E property here in N.E). Di i need to get my house in order before i apply is waht i suppose the question is. I've got to reroof a bay, repair my gates and i'm busy decorating the downstairs interior. Will they want to be in for a snoop?

herbiesjp

As Tom rightly says the equity in your home is your deposit, so don't worry you don't have to find any money.

At 20% Loan to Value, I would be very surprised if they do anything other than a desktop or drive by survey - I very much doubt they will around to look inside (they could prove us wrong though)

herbiesjp

@ Scott

Whether basic survey or full valuation is not the question - it is whether they will actually turn up to the property.

On a fee free deal, a basic valuation for mortgages purposes will be paid for by the lender - as OP is already living there I doubt they would want to go for a full structural survey.

As the lender is lending the money, I think they are well within their rights to look at the property if they want - to make sure the security is ok. When I re-mortgaged a couple of years ago at 30% LTV, they still wanted to look around!

MarkyMarkD

But, whether it's a fee free deal or you are paying a valuation fee, the lender can still do whatever it likes - the valuation is for its own benefits. A lender doing a proper valuation (instead of a driveby/desktop) on 30% LTV is just wasting its members'/shareholders' money IMHO.

Johnhowell

SUPERLOOPY,

Just completed a re-mortgage with Nationwide at 17% property value and there was no valuation. No costs at all and the mortgage can be tracked online.

John

herbiesjp

@ MarkyMark

Agreed I mentioned the fee free scenario as Scott said the burden of the valuation is passed onto the applicant - not correct if the deal includes a free valuation.

I see you agree that the lender can do what they want as it is them lending the money.

Agreed at 30% LTV they wasted their money, but also my time as I had to be home to let them in!