LTV - Remortgage

Peco141

Kynthia wrote: »

If the revaluation isn't likely to give you a better LTV banding, and therefore better interest rate, compared to the value to lender is happy to use (either your purchase price or a change based on local indexation) then what is the point paying for a valuation? For example if the lenders remote value gives you an 85% LTV but you believe an on - site valuation would result in an 82% LTV then there's no benefit. It's only if you expect the valuation to bring you down to the next LTV level that you'd bother if it's a choice.

Are you sure. In my case we're potentially talking about approximately 15 to 20k more than the existing 115k!!?

Peco141

kingstreet wrote: »

Normal process in each case;-

Customer retention product from existing lender - "indexed" valuation based on original purchase price with regional fluctuation taken into account via Nationwide or Halifax house price indices or possible automated valuation by HomeTrack

option of drive-by or internal inspection may be available at cost to borrower

Remortgage - lender will usually require drive-by or internal inspection by surveyor and will usually pick up the cost and offer free legals. Indexed/Automated valuation may be used for very low LTV cases.

Does this mean if the house a few doors down sells for £130k or more the lender will automatically take into account that my house is worth in excess of £130k rather than the value of £115k almost 4 years ago based on regional fluctuation?

xyz123

kingstreet wrote: »

Normal process in each case;-

Customer retention product from existing lender - "indexed" valuation based on original purchase price with regional fluctuation taken into account via Nationwide or Halifax house price indices or possible automated valuation by HomeTrack

option of drive-by or internal inspection may be available at cost to borrower

Remortgage - lender will usually require drive-by or internal inspection by surveyor and will usually pick up the cost and offer free legals. Indexed/Automated valuation may be used for very low LTV cases.

Thanks. In remortgage case where evaluation is done by surveyor, do those surveyors take into account recent sales in the area and is it any worth getting a Estate agent valuation done (I appreciate agents will inflate the valuation) or independent valuation done? Ta

kingstreet

Surveyors use comparables.

That's recent (last four months) sold prices of similar property in the vicinity (upto 0.5 miles) so base your estimate on them.

An EA marketing appraisal is not a valuation. It's the amount they think you want to hear to put your property on the market with them and therefore is pointless.

Peco141

For info.

Lender raised a valuation by an independent surveyor (Countrywide) as part of my request of execution only mortgage which cost me £65. £65 well spent as the valuation came back at £145,000 bringing my LTV down to around 58%!!

Probably saving me about a massive £10 per month bringing the APR rate from 1.99% to 1.74%. haha

Meh.