Possible silly question about re-mortgaging

[Dizzydodo]

This might be a silly question but.....when our fixed rate mortgage deal ends and we re-mortgage, if the house has increased in value (partly due to work we have done and partly due to market increases), does this mean our loan to value rate will be better so we will (in theory) get a better deal (ie lower monthly payments), or do they go on what you paid for the house?

You are correct - you will have a better loan to value and will be able to get better rates!

(Well, that's what happened with us at HSBC!)

Our fixed rate has just come up and mortgage co told us what they value our house at now based on house price indexes. We have the option to dispute this e.g. if we had done work like you have and would have to pay £70ish for a revaluation.

Your property will be valued by your new mortgage provider when you apply for the remortgage and they should take into consideration any improvements plus increase in value. Should be the same if you remain with your current mortgage provider and go for a better rate, this is what I did with my property and although I though the valuation was a bit below what it should have been it was enough to get me below 75%LTV and I got a much better rate.

Thank you! I thought that's what would happen but I've never done it before so not sure!