Remortgaging LTV and home valuation

Iffi

Hi guys,

Apologies if anything within my post is vague or unclear but I have very little knowledge or experience relating to this subject matter, but here goes...

My wife and I bought our first house almost 2 years ago. We put a 10% deposit towards getting a mortgage at the time. We took on a 2 year fixed rate mortgage which is due to expire at the end of July. Now, this is where I'm a little confused....

The bank have sent some mortgage deal options to us but there is no mention of the LTV these relate to. I read somewhere under the remortgaging advice section on the site, that if the value of your property has increased since, the LTV could be different. We haven't had the house valued but we're pretty sure there has been an increase. The bank have not suggested anything in this regard and it appears their deals are geared to those on 90% LTV.

My first question is, in these circumstances, do I need to get the house valued in order to get an accurate picture of the loan to value and if so, where do I start please?

Secondly, if the value has increased, should I be correcting the bank in line with their current offers?

I apologise for the stupid questions - as Iv'e said, this is all completely new to me and I need to sort something out sharpish as the current fixed term deal expires at the end of July.

Hope someone can advise, or relate at least.

Thanks in advance.

Raja

Baby_Angel

There will be someone with more experience to offer you better info.

When I re-mortgaged last year Nationwide valued it at the point of re-mortgaging. I did it online. I used their online house price index calculator beforehand to have a rough idea (and for comparing). However I was surprised it was slightly more by the time I applied for the deal (we are in London). Our original mortgage was for LTV 90% (fixed for 2 years) and remortgaged for deals in the LTV 65-70% range (fixed for 5 years).

However I am not sure how other banks do the valuation. I only know of Nationwide.

MortgageMamma

You could ask a local estate agent to value your property, or make an estimate as to what the most recent sale prices of similar properties in your area are (Estate agents the quickest option, just tell them you are planning on selling!)


The mortgage application can then reflect the true value, if you get it below the 85% mark you will get a better deal.


Also shop around for your remortgage, Nationwide my not be the best deal. Why not go to a broker who can find THE most competitive deal for your circumstances?

amnblog

What your lender has done depends on who the lender is.


The main lenders adjust your valuation based on their assessment of the change in prices in your area. The products they would then offer going forward would be based on that loan to value ratio.


In certain areas of the Country you might expect a sizeable shift in the value of your property. In others none at all.

Iffi

Hi all, just wanted to thank everyone for the extremely helpful advice. I've booked some agents in this week so will hopefully get an idea in respect of house value which I can then take to the bank and try and get a better deal, provided the valuation is in my favour.

Thanks and all the best.

Raja

Boredatwrork

Before you get anyone in, simply call your mortgage lender, they will advise what they curently value your house at and the LTV stright over the phone.