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    • jaxkesa
    • By jaxkesa 18th May 19, 9:59 AM
    • 239Posts
    • 61Thanks
    Valuation used by HtB equity loan repayment and remortgage
    • #1
    • 18th May 19, 9:59 AM
    Valuation used by HtB equity loan repayment and remortgage 18th May 19 at 9:59 AM
    I'm approaching the end of my second 2 year fix and am thinking of remortgaging to pay off the equity loan but I'm a bit confused about the valuation that would be used to calculate the amount of loan I need to repay.

    There are several 3-4 year old new build flats in the same development as mine up for sale at or just under the original purchase price and only 1 has been sold in that period.

    Other than those, there aren't any similar properties so would both a remortgage and HtB valuation be based on the value of the ones that are currently up for sale?

    The possibility of a lower HtB valuation is one of the reasons I am considering remortgaging now.

    When I first switched my Nationwide deal after 2 years, their automated valuation estimated the value up by 17% so I got a low LTV and 1.14% rate. It currently only estimates the value up by 6% but even still, nothing has sold for anywhere near that.
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    • kingstreet
    • By kingstreet 18th May 19, 4:28 PM
    • 35,129 Posts
    • 19,147 Thanks
    • #2
    • 18th May 19, 4:28 PM
    • #2
    • 18th May 19, 4:28 PM
    You would need to arrange a valuation by a RICS surveyor and the lender would also have a RICS surveyor do the remortgage valuation.

    They will both base their valuation on comparables, the recent (last four months) sales of similar property in the vicinity (upto 0.5 miles).

    Target will see only the valuation you arrange and not the lender's valuation for the remortgage.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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