Hopefully an easy question, I have a 90% LTV mortgage. I’m aiming to get that down to 80%. In order to do that do I need to:

A) Pay an extra 10% of the house value
B) Pay an extra 10% of the original loan value
C) Pay an extra 10% of the remaining balance

Cheers.

D) get it valued, and pay off some of the balance to make it 80% of the new valuation.

This may be close to B if you’ve only just bought (paying off 11% of loan amount straight away would do it), but if you’ve had the place a while or if it’s risen in price should be rather less than A or C.

(a)

Provided you still owe 90% of the house value depending on the current value and how much you have already repaid. So (a) would only be the case if you had just taken out the mortgage.

Get it valued, as unless you bought in the last 18 months it should have increased enough to get you to 80% LTV.

Sorry probably should have said, had the house for 4 years now and have started making roads into capital repayments so we owe less than the original loan value.

Are there costs associated with getting it revalued in relation to the mortgage?

Assuming you’re going for a remortgage, if you change provider they’ll make you get a valuation anyway, normally about £100.

You’re likely closer to 80% then you think.

If you’re not switching, then your current bank will have their own opinion as to your current LTV, so ask them!

The easiest way would just be to overpay your mortgage by 10% of the original value of the house. You’ll have to check with your mortgage company if you can without penalty though.

If you do get your house revalued be aware that the value could now be less than its original value.

Cool, cheers for the info all.

I think I’m going to keep overpaying what I can for the next couple of years as I’m on my second 3 year fixed deal at the moment. The aim was originally to clear £6k a year for the next 3 years to clear just over the 10% margin but situation has changed a bit and I’m not sure I can quite meet those overpayments for both of the next 2 years. Well I could but I still want to be able to go skiing, so I’m looking at what I really need to pay.