Remortgage with Santander - Significant value change?

PheoUK

Hi There,

Just wondering if anyone had been through this scenario. Current Santander customer and considering staying with them for remortgage for ease (lack of need for loads of checks)

However we believe the value of our property to have significantly increased (two reasons - significant refurbishment, and local value appreciation). As a result, there could be a £50k-60k difference in the original valuation and the new one.

Just wondering how Santander is likely to react to this when we request a remortgage? Are there any good rules of thumb about how they will value? anything we should be aware of?

Thanks!

AnotherJoe

Not sure what you mean by "react" to it as if it's a negative thing? Or have I read more into that than you meant?
If the value has gone up then the proportion of the house cost you would be borrowing would be lower than you initially borrowed so you might even be eligible for a better rate and you should be better placed for approval as well.
Might be worth looking around on account of the different loan ratio, at least quickly check elsewhere what sort of rates you might get that would be dependent upon the percentage you are borrowing.

Lemonsqueezer78

Generally, it is quite common for property values to have risen during the life of a mortgage deal and so it is also common to to re-value a property at the point of remortgaging (whether that is a new lender or an existing lender). So you would start by getting your property valued (getting a couple of local estate agents to value it should do the trick - or you could look at the local market/zoopla - but be aware zoopla is often very inaccurate, so do your research and be realistic). Then present that value to Santander when you approach them for a new mortgage deal. They will work out a product for you that is appropriate for your "new" LTV.

Santander will arrange for their own valuation, which you will generally need to pay for. If their valuation agrees, then all else being well, they will approve you for your new mortgage.

Simples.

PheoUK

Spot on! We shall do that then

densol_2

When I remortgaged with Nationwide ( product change ) they automatically changed the value upwards using their price index which was great as I fell into the lowest LTV and got the best rates I know Halifax also do that with their own index as well - not sure about Satander tho - worth asking ?

somethingcorporate

The HPI will often only be a small % each year rather than take into account the value of considerable refurbs which will require a surveyor to agree the value of, especially if done over a short period of time.

gunge

I have had additional borrowing with Santander three times in the last four years, also a full and a partial remortgage as well. The complexity came from needing cash to do various extension works, but also starting with a fixed deal and switching tracker deals to better rates when they were available.


Each time we put our estimate of the house value on the paperwork, each time they seemed to ignore our value and instead use their paper value (which did increase over purchase price with general market rates). It didn't matter most of the time until the last remortgage when all of the work we had done meant the actual LTV should have been much lower so we had a proper valuation done - it was something like £65 IIRC. More straightforward than I expected.

Thrugelmir

PheoUK wrote: »

Just wondering how Santander is likely to react to this when we request a remortgage?

Are you looking to borrow more or simply switch product.

Remortgaging is when you switch lenders.