Remortgaging and LTV

[bhafc99]

Sorry for the tedious thread.

We'll need to remortgage this autumn, for the first time. Can anyone tell me if the mortgage lender revalues your house as part of this, to calculate a new Loan-to-value ratio?

We put down a 10% deposit when we bought, but our equity is more than this now (even given recent price drops), so our LTV is likely to be lower than 90% now. More like 80%. (We've been on interest-only, so haven't paid of any capital that way though).

Or do they just look at the original LTV from when you began your mortgage?

Any advice appreciated.

 

[Moshe Gariani]

they will base it on the current value... hence the potential LTV problem if prices fall

 

[Kylies Stunt Arse]

I believe most lenders will want a new survey carried out and therefore will recalculate the LTV again. If you stay with your current lender on a new deal then they may not bother.

 

[Uncle Spielberg]

They will access the present value. If your rate ends in October, you need to start looking at options in July as a re mortgage takes 6-8 weeks to go through. If the ltv is under 75% most lenders will do a " drive by " whereby the access the value of the property from their car and will not require access to the inside , some lenders do a desk top valuation for ltv's under 75% whereby they look at rough values from land registry in the areas. If the ltv is over 75% especially in this market it is likely the lender will want to view internally as well and would call you to arrange access.

PM me if you want any re mortgage options.

 

[Common as Mook]

FT.com / Companies / Financial services - HSBC to match existing mortgages

This article is VERY interesting. Looks like HSBC are pouncing at the right time.

 

[Herr Tubthumper]

They will look at the current value. When I last remortgaged (with the same company) they asked me how much the house was worth, then they checked this out somewhere and agreed with my value and that was that. No formal (i.e. person come round to take a look) valuation was carried out.