Remortgage: can you decide product AFTER valuation? (LTV difference)

AllyMac

Hello - thanks for reading!
I'm looking to remortgage for a better rate, same property, new lender or same lender better product.
I have a mortgage broker but I've got this into my head now, and he won't appreciate an evening call for what may be a daft question!

I want the best LTV for better interest rates, but the LTV will depend on the new valuation. Zoopla puts me at +£30K since mortgage taken out, and whilst I think it's lower - there is a gain. What the mortgage company values me at will change my LTV.

Will they value it then let me switch my application between their products depending on the result?
Thanks!

JonMitchell

I'm not a mortgage adviser but sharing my experience with you, hope it helps.

Usually before an remortgage application is submitted, the mortgage lender will want you to decide which product to go for, obviously the lower LTV the better for both parties. Lower LTV = lower risk for mortgage lenders, Lower LTV = you are paying less interests. If you want to change the the product after valuation, there is a likelihood that the whole application needs to start again - which impacts personal credit score, booking fee etc.

Personally I find Zoopla's valuation is rather inaccurate and would prefer to see what value other property in my area sold for recently and use that figure instead. A 100% identical property to mine in South East recently sold for £xxxK but Zoopla valued mine at ~£100K lower, lol!! I remortgage recently and the valuation that came back from my lender was only £5K lower than the nieghbours house, definitely not ~£100K lower. So from my experience, I won't trust Zoopla too much myself (though it may fits some others plate).

Hope that helps.

AllyMac

Thanks for your time to reply!
That's a !!!!!! about the new applications as I'm on the cusp and a £5K valuation difference will change me from below the above 60 LTV.
Recent sales aren't helpful because my house is structurally and in age very different to anything else on the street and it's a smallish village.

John_Jizzle

before we did our re-mortgage we got an estate agent to come round and value the property. the usually get very close to what the bank thinks too