Remortgage LTV

Peco141

My 2 year 3.99% fixed rate comes to an end this month increasing to 4.74% in January.

Looking for a little advice on my options.

Bought the house for £115,000 and am now reviewing my options of a new term. I liked the safety of being in a fixed rate so am planning on getting another 2 or 3 year fixed.

However. The balance left on the mortgage is £90419 and based on the previous value of £115k the LTV sits at 78.3%.

I've replaced carpets and decor etc and generally freshened the place up inside and out. I understand I haven't specifically renewed the kitchen or bathroom but I'd like to think the price has risen a little since we bought and I also believe we paid a little less than it was actually worth. The home report valuation prior to purchase was £130k.

The only category 2 on the Home report (2 = Repairs or replacement requiring future attention, but estimates are
still advised.) was the garage roof which has been now been replaced for new.

My current lender Britannia would use their valuation of the property when carried during the application process which was the £115k. Or perhaps the take just use the value of the price we paid, I'm not sure..

Can anyone tell me if it would be beneficial to pay the £65 to have the house re-valued with a view to getting the LTV value down which in turn will presumably get the interest rate offers lower and subsequently the monthly repayment costs?

Thrugelmir

Give the lender a call. Ascertain their current policy towards valuations and find out what products are on offer when your current one expires. Britannia is now just a brand name of the Co-Op. Whose woes are well documented.

kingstreet

Peco141 wrote: »

Can anyone tell me if it would be beneficial to pay the £65 to have the house re-valued with a view to getting the LTV value down which in turn will presumably get the interest rate offers lower and subsequently the monthly repayment costs?

Not really. We have no way of knowing if your lender's idea of the value of the property is anything like realistic.

We also have no way of knowing what opinion a chartered surveyor might have. However, look here;-

http://www.rightmove.co.uk/house-prices.html

for the recent (last four months) sales of similar property in the vicinity (less than 0.5 miles) as these are the comparables the surveyor would use to value yours.

Peco141

I called them and they advised me that a re-value would be my decision alone based on the possibility that the house may be re-valued less than what they had on record which would obviously have a negative impact on a new offer.

So I'm not sure what to do ^^.

Are you suggesting not to remortgage with them based on said woes?

Peco141

kingstreet wrote: »

Not really. We have no way of knowing if your lender's idea of the value of the property is anything like realistic.

We also have no way of knowing what opinion a chartered surveyor might have. However, look here;-

http://www.rightmove.co.uk/house-prices.html

for the recent (last four months) sales of similar property in the vicinity (less than 0.5 miles) as these are the comparables the surveyor would use to value yours.

Suppose you have a point there.

There have been no properties sold in our style of house since 2012. That one went for £120k. There is a similar property on the market right now, offers over £124,500.

Just not sure which step to make next.

Thrugelmir

Peco141 wrote: »

Are you suggesting not to remortgage with them based on said woes?

Not at all. The bank will survive. More a question as to whether they wish to retain your business or not. Which will be reflected in the products they offer you.

kingstreet

Peco141 wrote: »

I called them and they advised me that a re-value would be my decision alone based on the possibility that the house may be re-valued less than what they had on record which would obviously have a negative impact on a new offer.

So I'm not sure what to do ^^.

Are you suggesting not to remortgage with them based on said woes?

It isn't a remortgage, it's a customer retention product.

A remortgage is a new mortgage with a new lender on the old property used to repay the old mortgage. It requires a new mortgage deed, hence it's a remortgage.

No, I'm not saying you shouldn't explore your lender's customer retention products. I'm saying you are going to have to weigh up the cost of having the property revalued against not doing it. No-one here can tell you how the lender, surveyor or your valuations will compare/contrast.

A remortgage with a new lender may offer a free valuation and cover your legal costs, to allow you to explore your options further

Peco141

Thanks for the replies guys. Been a great help.

Can you tell me if any new free valuation from a potential new lender will go on a file or remain between myself and the potential new lender?

What I'm getting at is, if the house is re-valued less than my existing lender has on record can I go back to the existing lender and continue with the retention offer?

Peco141

Thread has a gone a little quiet. Hope it's ok to keep it going.

Will my current lender review current debts and outgoings before lending on a new 3 year fixed, as I'd be changing to a cheaper deal on the same balance??

Peco141

FYI, sticking with current LTV and booked in for an execution only remortgage with current lender. God knows what that means.

dimbo61

You are not borrowing any more than you already owe them so No they should not do a Review of your current debts ( Unless you tell them!)
Execution only means they are NOT giving advice and you are the one picking the deal.
Now if you are
1 Saving money by taking a new deal at a lower rate ( Great)
2 Fixing for 3 years so you can tackle your other debts
3 Not shopping round when your current situation does not look great?????
Do you have other debts Credit cards, Loans, HP etc ?


The whole mortgage market has changed in the last 2/3 years and with MMR it is harder to get a mortgage if you have debts, low income, poor credit history, CCJ, defaults etc