how to value for remortgage?

karie

Hello,

wondering if anyone can advise...

I bought my apartment in August 2006 on a 2yr fixed rate repayment mortgage of 4.9% with Alliance and Leicester. My deposit was only 5%. Now looking at remortgage options for a couple of months time, I am a little confused about valuations.

- My flat was on the market for £105,000
- I bought it for £98,000
- My outstanding mortgage is approx £93,000 (95% LTV based on purchase price.. very little capital has been paid back over the 2yr period)

Am I correct in saying that my mortgage was based on a valuation of £98,000 (the selling price). What I am now confused about is how I value it for remortgage purposes - I understand that the new mortgage provider will want a proper valuation carried out; however, what do I input when using mortgage calculators online, for example?

Unfortunately I can't benchmark it against other apartments in my building as none the same size have been for sale in the last while. The Nationwide calculator estimates it would now be worth approximately £101,300 - should I be using this figure?

With mortgage options more limited, I think I will have to increase my deposit, as such, when remortgaging... however a decent valuation may help lower my LTV?

any advice?? thanks!
karie

Tiddler_2

You've got nothing to lose by putting it on their system as between £100k & £105k providing that you are not paying any up front fees for the new remortgage deal.

It may well be the situation that you don't need to remortgage - speaking to your existing mortgage company should always be your first point of call, to see what they will offer you. You then know what you've got to "beat" to get a better deal. Don't forget to take into account any mortgage exit fees charged by your current lender, when looking at the total cost of remortgaging.

karie

thanks Tiddler

beecher

karie wrote: »

Hello,

Am I correct in saying that my mortgage was based on a valuation of £98,000 (the selling price).

Only if that selling price is also what it was valued at when you got your survey done.