New mortgage deal

clairecymru

We bought our house two years ago for £85,000 on a 95% mortgage. Our fixed deal is coming to an end and wondered how the LTV will be calculated next time. Our home report at the time of the sale said the house was worth £95,000. A sold sign has just gone up for a house down the street (not as good condition as ours but sold within days) with an asking price of offers over £100,000.

Will the mortgage company base our LTV on the £95,000 of the original home report or will we have to get a valuation done on the property and will we have to pay for this?

andrewmp

clairecymru wrote: »

We bought our house two years ago for £85,000 on a 95% mortgage. Our fixed deal is coming to an end and wondered how the LTV will be calculated next time. Our home report at the time of the sale said the house was worth £95,000. A sold sign has just gone up for a house down the street (not as good condition as ours but sold within days) with an asking price of offers over £100,000.

Will the mortgage company base our LTV on the £95,000 of the original home report or will we have to get a valuation done on the property and will we have to pay for this?

They'll probably just use a standard calculation based on house price change in the area since you bought.

The Halifax House Price Calculator could give you an idea.