FTB mortgage question

dannyjebb

Hi all

We have just had our offer accepted, we had an agreement in principle from our MA for 10k over what we got the house for

Our payments for the higher mortgage amount were £765 so I have worked out for the lower amount will be about 720, we budgeted £900 per month for mortgage payments originally, our plan is now to make overpayments of approx £200 per month, this should leave our balance at the end of year 3 at £15780, as we only have 5% deposit we don't have a great interest rate. so hoping to have the above balance left after 3 years and remortgage.....anyway my question was when remortgaging will the mortgage company revalue the house and work out your equity from that? ie for simplicity, if the house was valued at 200k and we needed a remortgage for 160k we would effectively have 20% equity? so be able to get a mortgage on a better deal?

thanks

ACG

Depends on the lender, some will use the same value as when you purchased it unless you pay for a new valuation, others will use a desktop valuation which is not always correct (but that can sometimes be in your favour).

But you can usually switch lenders and get a free valuation.