LTV leniency in remortgaging?

ForestBluebells

I’m currently looking to remortgage and my broker is looking at 60% LTV options when I’m worried my home isn’t quite at the value needed for these, my neighbors are currently selling and their listed price is about £15k off what would put me in the 60% LTV category... although I believe my place to be worth slightly more due to better sized layout of rooms, my garden is attached and bigger, plus I have a front garden and they don’t. Not sure that would account for the £15k though! My broker says the lenders are more lenient on valuation for a remortgage especially around this LTV level but I’m worried I’ll pay £999 arrangement fee then they value lower than needed, refuse to give me that rate and I get stuck on a higher rate which isn’t the best value for the next LTV band. Are they really more lenient on valuations or is this not sensible advice?

[Deleted User]

I have not heard of any leniency. Any downvaluations I have had recently have been on remortgages even when i've been putting in the price of recently sold properties nearby.

I doubt the valuer would have any incentive or reason to be lenient in any way.

You are more likely to get a desktop valuation though which might just use recently sold data and would probably be worse for you if its not obvious why yours is better

If you are worried about losing fees, just add the fee to the loan and pay it once the valuation comes in where you want it to, and only pay the broker on receipt of offer

ForestBluebells

If I add the fee to the loan and they don’t value my property as expected will my loan stay 999 higher or do they then remove the arrangement fee if I have to go elsewhere? If it all goes through and I pay the fee my monthly payments will then drop to what they would have been if I didn’t add the fee? There are no similar properties near by only my neighbors whose is £15k lower than my mortgage broker wants me to value mine 😬

[Deleted User]

if you have asked to add the fee to the loan but the loan doesnt start then the fee is never paid.

If the loan starts you can pay the fee straight away and it will be as if you paid it upfront. Most lenders give maybe 10 days or 14 days to pay any fees before interest starts on them