Does increase in house value affect LTV if you remortgage?

white_lion

I have a question about when my 2 yr fixed repayment mortgage which expires in Dec. My house value has gone up significantly since buying 2 years ago and I wondered whether that would affect my LTV if when my mortgage expires I decide to remortgage. I ask because this will entitle me to better mortgage rates from lenders. Also if the answer is yes who do you go to for the valuation? Is Zoopla/Mouseprice enough?

Thanks in advance,

Ella

kingstreet

Are you remortgaging, or asking your current lender for a customer retention product?

In the case of the former, you would estimate your value (surveyors use the recent (last 120 days) sold prices of similar property in the vicinity (less than 0.5 miles) based on the comparables the lender's surveyor will use during the inspection.

If the latter, your current lender will probably use an indexed valuation, based on house price changes in a broader area which may not properly reflect the true value. Many lenders will then allow you to pay for a drive-by valuation, or internal inspection.

white_lion

Hi Kingstreet, thank you very much for the info, I'm not really sure yet, I will be enquiring as to both. But you've answered my question with more detail than I had hoped, so that's brilliant.
Thank you!

dimbo61

Your starting point is you existing Lender and the product you have!
Get out the mortgage paperwork and read, We offer a two year fix which then goes onto the SVR at 4.99% !!!! Or some form of tracker deal ?
Give the mortgage centre a call to find out your outstanding balance and what they value your property at today! See what deals they have for you.
Is this close to what you think it's worth ? LTV 87/86% or 76% so close to next LTV level for better mortgage deals.
Now if you live in London or many parts of the south east where prices have gone mad over the last 2 years or done major works you may get a better deal by moving lenders and having a full valuation done at today's values not a DESK TOP valuation by a computer.