Remortgage question

boogiesherbs

Hiya all just a quick question when my fixed term deal expires in 2 years and if i move lender how do they decide the current value for the LTV?
Will someone come round and value the property or will they take an average on current trends?

Thanx

Ian_Griffiths_Halifax

It will depend on the lender and the market at the time.

Some will send a valuer round and some will use an automated valuation (done by computer).

The market at the time will make a difference as valuers are currently down valuing for remortgages but if repossessions are on the rise, they might down value more based on a forced sale situation, ie. if the property had to be repossessed and sold quickly.

If you have a repayment mortgage then you are chipping away at the debt month by month and this will help, but as you will see from other posts on similar situations, the worst that would happen is that you would go onto your lenders Standard Variable Rate.

boogiesherbs

hmm thanx for your advise well we got our house on an interest only mortage and it has 2 years left to run before the standard rate kicks in when we will want to move onto a payment mortage, what i was hoping was by then that our LTV would have moved in our favour. What do you think our chances are?

thanx

Ian_Griffiths_Halifax

If you added fees to your mortgage when you took it out, there is a chance that you may be slightly into negative equity at this moment in time. What the situation will be in 2 years time, nobody knows, but I must say it does look like you may have to just go onto your current lenders Standard Variable Rate unless you can start overpaying now. Check your mortgage offer letter to see if it will allow overpayments now.