Remortgage but no longer employed.

seagull77

My fixed term mortgage is coming to an end and we have been offered new deals with Natwest who we are currently with.
The property has doubled in value since we bought it and I can see we would save a lot of money if we had it revalued.

My problem is when we bought the house 8 years ago we got a mortgage based on 2 incomes. I am currently a stay at home mum and on paper we shouldnt be able to afford the mortgage on one income. (we can easily as are very frugal).

If I ask Natwest to revalue property before getting new deal could it put our mortgage at risk? would we still be able to get the deals offered to us now?

when we got the mortgage Natwest were the only lender to offer us a mortgage as we are above a commercial property.

Hope that makes sense? thanks in advance for your help.

Mortgage_Adviser

Natwest will be going with the current market estimate value of the property not the value of it 8 years ago

seagull77

Mortgage_Adviser wrote: »

Natwest will be going with the current market estimate value of the property not the value of it 8 years ago

thanks for your reply. When we bought the property it was in a bad state of repair. It had no central heating, bathroom or kitchen. How would Natwest know what we have done to the property? Would the current market value they use be based on an average for the area?

what i really want to know is if I pay for a revalue to happen, will they need to reunderwrite the mortgage?

Caz3121

seagull77 wrote: »

When we bought the property it was in a bad state of repair. It had no central heating, bathroom or kitchen. How would Natwest know what we have done to the property?

I assume there was a retention originally, properties without bathroom or kitchen are generally not mortgageable. What evidence did you have to provide to get the retention released? they should know that it has a bathroom and kitchen now and account for that.
What LTV is your offers based on? will it make a huge difference?

seagull77

not sure but i know we only got one offer. The LTV my offers are based on is 45% with the property valued at £280,000. Right now similar properties on my street are selling for £380,000 - £410,000.
a revalue of £380,000 would bring my LTV down to 31%.

Broadyx

31% or 45% is unlikely to make any difference to the products offered - what are the current loan to value brackets on the products available to you?
Most lenders have an under 60% or under 50% LTV bracket and thats it.

also, if you are an existing mortgage holder they are unlikely to re-underwrite your mortgage even with a revaluation, so the change in income shouldnt matter.