mortgage deal coming to an end how do they come up with value of house for new deal???

[LoveBeingAMummyKissingSanta]

OK so we bought our house almost two years ago on a year fixed and I am about to start looking round for our next deal but I ahve a question re LTV how does this get worked out? Do I need to get it valued? Can't believe I don't kow this

Your new mortgage provider will want to do a valuation (you'll have to pay for it though). Generally they will accept a 'drive-by' valuation (cost around £100) whereby the surveyor simply looks at your house from the outside. They will base the value on what other similar properties nearby are selling for.

So when you apply for the mortgage you will need to give an estimate of the value, the lender will then offer the mortgage subject to their valuation. Be warned -- from what I've heard, a lot of surveyors are valuing on the low side at the moment as they expect prices to fall.

Thanks MegBusset, just wondered because we got it at a really low price cause it needed loads doing to it so just wanted to make sure wasn't going to get stuck with the value that we paid seeing as they want a higher ltv now.

we refixed last year and as far as i can see the valuation was decided entirely randomly - nobody came round. apparently often valuers wont even drive past the house just look at what similar ones in local estate agents are going for. this might benefit you if yours was unusually cheap because it is in a rundown state - if you cant tell that from the outside then they might assume its worth the same as a similar house in good nick. but do be prepared for a shock as everyone seems to be valuing low....

i remortgaged about 3 months ago and the survyor just drove by and picked a figure. It was pretty good just about what i needed maybe a couple of grand less. I called up and said they were selling for higher and they changed it. I got the amount i needed. Was alot easier than waiting in which would have lowered the value as i wa and still am redecorating and stripping wood.

Do you have to have it valued by the bank/lender if you are not borrowing more money, just going for another fixed rate term?

If it is the same lender and property as your existing mortgage, you will probably not need a new valuation. Just if you are getting a mortgage from a new lender.

I left my details over two weeks ago with the bank and they assured me that the adviser would call me...still waiting.

Yeah am going to change lenders I think.

Haave you tried a mortgage broker they can access the best deals.

I've just called our lender today. Small loan is on SVR, big on fixed til Sept and wanted to refix small, possibly put small+big together. Well, based on the HPI they gave our house against the mortgage we originally took, the roomy deposit we originally put down has reduced to almost nothing, and they can't offer any mortgages.

I feel rather sick and am hoping we can fix with someone soon because as soon as interest rates rise, we will be seriously feeling the pinch on the SVR.

And this is how people end up being repossessed. And we paid under the market value for this house (Nov07).

Any words of advice please, before I go into all-out panic? We will be looking at mortgage brokers for help.