How do i work out the LTV

WelshGlyndwr

My mortgage is due for renewal in August 2024. i bought my house for 222,500 in 2019. my mortgage at renewal will be 143,000. How do i work out the LTV. Do i do it against tye value i bought the house or try and asses the current value?

inkydolphin

https://www.moneysavingexpert.com/mortgages/getting-ready-remortgage/

ACG

It depends on the lender. Many lenders now will work off the indexed value. If house prices have gone up say 10% in your are in those 5 years, they might value it closer to £244k. 

K_S

WelshGlyndwr said:

My mortgage is due for renewal in August 2024. i bought my house for 222,500 in 2019. my mortgage at renewal will be 143,000. How do i work out the LTV. Do i do it against tye value i bought the house or try and asses the current value?

@WelshGlyndwr As mentioned above, most lenders will use the indexed value which is your purchase price + change (according to whichever house price index they use)

With many mainstream lenders (two examples below), if you login to your online mortgage account, there's a section on there that shows the current value of the property as per the lender. That's the value they'll usually use for the LTV calc.

https://www.halifax.co.uk/mortgages/existing-customers/hellohome.html
https://www.santander.co.uk/personal/support/greener-living/greener-homes/my-home-manager

WelshGlyndwr

K_S said:

WelshGlyndwr said:

My mortgage is due for renewal in August 2024. i bought my house for 222,500 in 2019. my mortgage at renewal will be 143,000. How do i work out the LTV. Do i do it against tye value i bought the house or try and asses the current value?

@WelshGlyndwr As mentioned above, most lenders will use the indexed value which is your purchase price + change (according to whichever house price index they use)

With many mainstream lenders (two examples below), if you login to your online mortgage account, there's a section on there that shows the current value of the property as per the lender. That's the value they'll usually use for the LTV calc.

https://www.halifax.co.uk/mortgages/existing-customers/hellohome.html
https://www.santander.co.uk/personal/support/greener-living/greener-homes/my-home-manager

does nationwide do this?

WelshGlyndwr

Nationwide says its worth £293000 even though i bought it 4 years ago for 222500 is that realistic?

K_S

@welshglyndwr Whether it's 'realistic' or not depends on the context.

Will you get 293k if you put it on the market - maybe or maybe not

Will Nationwide use the indexed value of 293k to calculate LTV for an existing-borrower product switch - Yes, they should

WelshGlyndwr said:

Nationwide says its worth £293000 even though i bought it 4 years ago for 222500 is that realistic?

WelshGlyndwr

so thats really good isn't it wont that reduce the LTV considerably?  so better for the mortgage?

Edi81

It gets you to 49% LTV which is the best you can get. Typically lower than 60% is the best rates. 

K_S

WelshGlyndwr said:

so thats really good isn't it wont that reduce the LTV considerably?  so better for the mortgage?

@WelshGlyndwr To an extent, yes.

With Nationwide, once you hit 60% LTV (the lowest Nationwide LTV band) there's no further benefit to be had.

So, from the point of view of what product-switch rates you will have access to, as long as Nationwide values the property at ~238.5k (exactly 60% LTV for 143k loan size) or above, it's all the same.