LTV and Remortgage

mrsmsebastian

I want to understand the LTV when I remortgage please
I know you'll get a better rates if you have 60% LTV but who dictates the value of your property when you are just switching product with the same lender?
Shall I get my property valued first and use the figure when you switch online or does the lender use the property valuation when you first took out a mortgage from the them?

[Deleted User]

The lender uses the value from the last actual valuation and then applies the house price index to the number.   Sometimes this gives a low figure if you bought the house cheap but sometimes I have seen the index valuation be well above reality as it doesnt drill into local data enough. 

If you dont agree you can ask them to revalue the property for a fee. 

Or you can go to a new lender for a remortgage and you self declare the valuation and let the valuer either agree or disagree

K_S

@mrsmsebastian You usually have two options for product switches -

1. The lender applies an automatic indexation revaluation of your property and that's used for the new LTV

2. If you feel that the above undervalues your property, the lender offers the option to pay for a valuation. The only word of warning on this is that if the valuation returns a figure lower than the above value, the lower valuation will be taken in to account by most lenders.

mrsmsebastian

Deleted_User said:

The lender uses the value from the last actual valuation and then applies the house price index to the number.   Sometimes this gives a low figure if you bought the house cheap but sometimes I have seen the index valuation be well above reality as it doesnt drill into local data enough. 

If you dont agree you can ask them to revalue the property for a fee. 

Or you can go to a new lender for a remortgage and you self declare the valuation and let the valuer either agree or disagree

Thank you this is very helpful. I might end up asking them to revalue for a fee as I got the house quite cheap and the same properties in the street is selling much higher even during pandemic.

mrsmsebastian

K_S said:

@mrsmsebastian You usually have two options for product switches -

1. The lender applies an automatic indexation revaluation of your property and that's used for the new LTV

2. If you feel that the above undervalues your property, the lender offers the option to pay for a valuation. The only word of warning on this is that if the valuation returns a figure lower than the above value, the lower valuation will be taken in to account by most lenders.

If just in case I go for an option to pay for a valuation and did not like valuation, can I go somewhere else to remortgage and would the new lender send their own surveyor for the valuation?
Would the original lender run a credit checks when you do a product switch specially if you choose to pay for a valuation?
Thank you

K_S

mrsmsebastian said:

K_S said:

@mrsmsebastian You usually have two options for product switches -

1. The lender applies an automatic indexation revaluation of your property and that's used for the new LTV

2. If you feel that the above undervalues your property, the lender offers the option to pay for a valuation. The only word of warning on this is that if the valuation returns a figure lower than the above value, the lower valuation will be taken in to account by most lenders.

If just in case I go for an option to pay for a valuation and did not like valuation, can I go somewhere else to remortgage and would the new lender send their own surveyor for the valuation?
Would the original lender run a credit checks when you do a product switch specially if you choose to pay for a valuation?
Thank you

@mrsmsebastian Each lender will do their own valuation. However, most mainstream lenders will use similar tools and often the same surveyor firm for valuations in a particular area.

No credit checks, affordability checks or income verification for product switches, as long as you aren't looking to borrow more or change the term.