What happens at the end of my mortgage fix?

[marzipancustard]

Coming to the end of our 2 yr fix with FD. Will have to stay with them as we wouldn't pass affordability just now.

What exactly happens when we choose a new product? I've heard they recalculate the house value & therefore LTV for the fix using a computer - any idea if this is something we can work out ourselves? Will it definitely have increased in value?

I went on the bank's mortgage page and looked at their offers. I think there were mortgage calculators where you can work it out.

We just went onto the standard variable rate, which was cheaper than our fixed had been so we're sticking with it for now

We have recently fixed with FD. They advised us to contact them when we reach a few months of the end of our deal. They said they will find the best new rate available and arrange it so that the changeover is seamless. If you are definitely going to stay with them, I would contact them now.

You can either go automatically onto standard variable rate (which will probably be cheaper) or you can arrange new fixed rate or other deal. When we got a new fixed rate (from variable) with HSBC the valuation was automatically increased which put us into the next LTV bracket down - we didn't know they would do this without a survey but it was very welcome! I thought it is calculated based on postcode maybe?

For reference the increase in value calculates to around 8%, house was bought in 2011 and fix was taken out last year so increase was over 3 years, I've no idea how it is calculated though, can't possibly be an across the board increase, you'd have to get a quote from them to see how they have changed the value, if at all.