Remortgaging with same Lender...

[Beau2019]

Remortgaging/switching deal - whichever you want to call it.

Our 2 year fixed deal is up late next year and our house currently (based on 2 sales on same street of identical houses) has gone up by £15k. I am presuming by next year we will have gained approx. £20k in value.

Our financial situation has changed since taking out the mortgage - higher debt basically. My question here is, if our LTV has decreased from 95% to 80% in 2 years, does our current lender take the new valuation of our house into account or when we switch, or do they class the valuation as the purchase price 2 years previous?

I am aware we would likely get a better deal elsewhere BUT the easiest option for us would be to avoid a whole new mortgage application until we have paid more debt off. Even staying with the same lender we would save monthly switching deal anyway. We are with Leeds Building Society.

Please no suggestions on switching lenders, I just want to know how your CURRENT lender values your house when switching deal and is there an option for paying for new valuation?

@icantbecani Yep!! The purchase price of out house wasn't high and 20k will increase our equity by 15% (that includes the capital payment we made over 2 years)

In process of remortgaing and borrowing more with same lender now. Although I was sure the value of the property meant what I was borrowing was well within 60% ltv (i.e. for it not to be it would have to be worth less than £10k under what I paid for it ten years ago and £65k less than I thought its value was). To my surprise they sent a valuer round for an internal inspection.

Two of them turned up earlier this week and measured and photographed everything including the boiler. The valuation was fine and so I am ok. Now moving onto a much lower interest rate.

They also went into the loft. They were extremely thorough. My property had been partly improved whilst in the nearly 5 years we have been here, but still needs a lot more doing, hence the improvements.

Yes. Will be the answer. (reflective of speed and online only process)

New term, new rate. No other change. (just dates)

With first direct they told us that the LTV had gone down as it showed our house value had gone up, and consequently we got a better interest rate as we crossed a threshold into another LTV bracket. No harm in asking

We had changed the deal twice with the same lender and the ltv ratio was always based on the price we purchased, even though the value of the house increased good 25% over the years we had it ( and did ridiculous amount of work on it!!). It didn’t matter to us as we were in the best band anyway, so didn’t even think of requesting a valuation.