How to value LTV for remortgage?

Reue

We're coming to the end of our fixed term mortgage and will be looking to re-mortgage. In that time I expect that our property value will have gone up due to improvements and general area price rises.


How do we know what the LTV will be for any re-mortgage application? Presumably the mortgage vendor will want to get the property valued by their own surveyor however surely this would happen after we had made the application and thus knew the LTV beforehand anyway?


Is it is case of needing to get an independent valuation before contacting the mortgage vendor?

foxy-stoat

Ask your existing lender what they value your property at then look on rightmove or other sites for similar properties recently sold.

amnblog

If you are going to a new lender you make a guess at the value and apply based on that.


That is about as scientific as it gets.


As Foxy says, Rightmove or Zoopla can give you an indication of what similar properties have sold for recently.

andys15

You apply for a remortgage and put in your valuation. If you think you have 62% and you want a deal at 60% then try that. Obviously if it's unrealistic then it would be silly. My LTV frustratingly was 62%. It was the difference between 2.39% and 2.58%. The bank had my house valued at £265%. I put down £325k which was an oversight on my behalf as they put me at 61.5% LTV. The valuer came and agreed with my valuation. Wish I would have put £329k now as it would have secured me a better rate, and I am sure he would have agreed.

benjus

Last time I remortgaged the lender didn't do a proper valuation anyway - they either did a "drive by" or just let the computer calculate it from a house price index. That was 10 years ago though... I can't remember where the valuation figure used for the application came from.

I'm going to remortgage next year (different property)... I was planning to start by looking at the retention deals from my current lender, which would include an updated valuation (based on an index). I might also ask the agent that it was sold through when I bought it.

murphster

Not sure how this all works and think it is a bit of a scam to be honest. I re-mortgaged in 2011 and valued my house at 85,000 and got the re-mortgage. I have been wanting to move, my plan was to let mine out. Applied for a buy to let mortgage and gave a value of 80,000 (thought it couldn't have changed much so I was safe with that). Surveyors valuation came back at 70,000.