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Original poster

Remortgage

22 replies

Thingsthatgo · 09/04/2023 09:55

This is going to be a really daft question. Sorry. I have never needed to remortgage before.
When the bank works out the LTV for the new mortgage, they go with the current value of the house, right? Do they do a whole new valuation, send someone round etc? Will they look at improvements? We haven't done an extension, but we have, for example, replaced all of the windows, replaced all the electrics and boiler.
Just curious really, and future planning.

OP posts:
Talia99 · 09/04/2023 13:24

They didn’t for me, just took the old valuation. If you want them to recognise an increase in value, I assume you need to make special arrangements.

oneredeemingfeature · 09/04/2023 13:30

They normally go with the value that the House Price Index give. You can look it up yourself on line. Ours was substantially less than the value given by estate agents though.

AlwaysGinPlease · 09/04/2023 13:31

We remortgaged last year and they did a valuation. Fixed rate for 5 years at a very low rate. Thank goodness. It's also a portable rate so we are moving and porting the rate.

Namechangingagain111 · 09/04/2023 14:13

Whenever I've remortgaged, they've always either done a drive-by valuation to see if it lines up with the other houses in the street (as those will have more recent sales prices) or sent someone round for a quick walk through the house

Girlintheframe · 09/04/2023 14:34

We remortgaged about 18 months ago. They did the valuation using some type of computer program.

Toooldtoworry · 09/04/2023 14:38

A lot of lenders will do desk top valuation for remortgage, some will send someone out but it's rare.

thegrain · 09/04/2023 14:40

They did a desktop valuation for ours. There was a question about if we'd added anything like off street parking.

Original poster
Thingsthatgo · 09/04/2023 17:28

Thank you all. Very helpful. The house price index says our property has gone up 28% since we bought it 2 years ago. That's bonkers!
My house is earning more than I am.

OP posts:
Talia99 · 09/04/2023 18:12

I’m not sure the house price index is wholly reliable. I live in a flat very similar to others in the same building and the index says it’s worth £330,000. Flats in the block are on the market for £280,000 so a substantial difference (and they may well be selling for less).

GiltEdges · 09/04/2023 18:23

Depends on the lender. We just remortgaged with Natwest and they came round to value the house. Our previous remortgage with Halifax was based on a desktop valuation.

HauntedPencil · 09/04/2023 18:25

Our new lender did a desk top valuation without coming out (if was "free") it was a fair bit lower than the value on Zoopla.

caringcarer · 09/04/2023 21:36

Look at house prices sold. Put in your postcode and road name. You can see what other houses on your road were sold for. This is what is used for a desk top valuation.

KievLoverTwo · 11/04/2023 11:58

Thingsthatgo · 09/04/2023 17:28

Thank you all. Very helpful. The house price index says our property has gone up 28% since we bought it 2 years ago. That's bonkers!
My house is earning more than I am.

Can I ask if you found somewhere on the house price index to put your postcode in?

I'm trying to find area specific info on the index and failing! Thanks.

Furries · 11/04/2023 13:01

My experience so far has been that, if I stay with the same lender, it’s been an automatic valuation plus no need to resubmit proof of financial situation etc.

If I’ve moved to a new lender, then it’s been a full valuation, plus full process re finances.

Scottishskifun · 11/04/2023 13:14

It depends on what your doing.

When we switched lenders they sent round a valuation person (HSBC) when we remortgaged with HSBC they did their own in house valuation based on area property increase and gave us that. Their in-house is very generous and apparently according to them our house price has increased by 50k......

Original poster
Thingsthatgo · 11/04/2023 14:41

@KievLoverTwo I found the house price index on a mortgage provider website where I could put in the postcode and the year I bought the property plus how much I paid for it. It was on Nationwide I think, or possibly NatWest.

OP posts:
KievLoverTwo · 11/04/2023 16:03

Thingsthatgo · 11/04/2023 14:41

@KievLoverTwo I found the house price index on a mortgage provider website where I could put in the postcode and the year I bought the property plus how much I paid for it. It was on Nationwide I think, or possibly NatWest.

Thank you.

KievLoverTwo · 11/04/2023 17:55

Thingsthatgo · 11/04/2023 14:41

@KievLoverTwo I found the house price index on a mortgage provider website where I could put in the postcode and the year I bought the property plus how much I paid for it. It was on Nationwide I think, or possibly NatWest.

Wow. That index is inaccurate to the tune of 200k for the place I'm buying. It thinks the house value's only gone up 26% over 17 years, when in fact it's averaged 6% a year every year because it's in a place that people are crazy desperate to live.

cloudonego · 11/04/2023 21:04

First time we remortgaged they did a proper valuation (they paid for it), second time (different provider but lower LTV) they just did a desktop valuation.

cloudonego · 11/04/2023 21:06

Oh yes the first remortgage was with a new provider whereas the second one was a refix with the current provider so that fits what others have said.

breakingintopieces · 11/04/2023 22:29

Every time I've remortgaged with the same lender, they've applied some kind of crazy percentage to the price I originally paid.

Truthfully, my property is only worth about the same as what I paid for it.

It makes me reluctant to switch to another lending as a new valuation, and therefore the LTV would go down considerably!

CornishGem1975 · 12/04/2023 14:01

oneredeemingfeature · 09/04/2023 13:30

They normally go with the value that the House Price Index give. You can look it up yourself on line. Ours was substantially less than the value given by estate agents though.

I just checked what my current lender is saying at the HPI is a lot more than I would have put it at!

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