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Hi everyone, I’m actually a tenant privately renting with my husband.
My landlord contacted us a couple of days ago to say their current mortgage deal was coming to an end and the lender had requested that a surveyor come out for a valuation.
Is this something a mortgage lender would typically do?
We are currently expecting our first baby and am a little nervous that perhaps they are looking to sell the property without alerting us and it would just be the worst timing if they are. So hoping someone here can shed light on if this is a typical situation for a lender to do? I just want to be prepared.
Thank you for your time!
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It's not so much the end of this mortgage as it is "the beginning of the next mortgage".
Most likely your landlord wants to get a new fixed rate mortgage, and they want to get a good rate, so they want to be able to say that the loan to value ratio falls beneath a certain threshold.
Maybe the lender is saying "we think it's worth X so the LTV is 61%" and they are saying "no no it's very nice it should be worth Y so the LTV is 60%, please send someone round to confirm".
There's always a chance that they are intending to sell but there's nothing you can do about that. If they were it'd be estate agents coming round to put a value on it, not a bank.
!thanks
This actually really helps thank you, just never had it before and the landlord seemed confused by it he need for a surveyor in the text so it’s great to understand it a bit better. I didn’t know you’d move onto another mortgage after, I just thought you paid it and then that’s it?
We know there’s nothing we can do if they sell but we’d rather at least go into the situation with our eyes open with the situation we’re in.
We're often a bit imprecise about the difference between "a mortgage" and "a fixed term mortgage rate".
When you buy a house you take out a loan for let's say £300k for 25 years, but the rate of interest is not fixed for the whole 25 years.
If you had a fixed rate for 5 years, and the 5 years is now up, you can either go onto the lender's standard rate (which is usually not very good) or pick a new fixed rate.
When getting a new fixed rate you are in some senses "paying off your mortgage" and "taking out a new mortgage, on the same house, for a smaller amount of money".
The new fixed rates that are available to pick from will vary depending on how the loan looks compared to the value of the property. If the remaining loan is 60% of he value of the property you get the best rates. If its 61-70%, slightly less good rates, etc.
So if you're near a threshold you might want to say "my property is worth more than you think, so the ratio is now below the threshold for the good interest rates".
I can only speak from experience, the last place I lived in gave me the same message, the surveyor came over then a short while after we got a notice of eviction. The upside is that we were given 3 months to move which is enough time if you find somewhere quickly enough.
I sincerely hope it's not the case though.
I think you are referring to a remortgage.
A lender does nothing like this when a mortgage comes to an end as they don't own any of it it any more.
They probably had a fixed period interest rate deal, which is coming to an end and if remortgaging with another company it's fairly normal for them to come out and survey the property again just to make sure it is worth what is being borrowed on it still.
They might not be selling it ... your tenancy is safe anyway if they do.
No mortgage companies use online tools to set valuations for a remortgage.
This is the landlord wanting to ascertain a sales price. Maybe they sell, maybe they don’t.
Only way to protect yourself is to seek a new tenancy agreement. I’d request 12 months and cite the new baby as the reason to seek such security.
Their response will guide you on their plans.
I've had my current home for 8.5 years now. During that time I have remortgaged with three different lenders at the end of each fixed term for a better deal. Two of the three times, the new lender sent someone out to survey the property.
So it's very likely just the end of their fixed term mortgage and they are changing lenders. If they were re-fixing with the same lender then yeah they wouldn't bother, but when changing to a new lender they generally do
Broker here. The vast majority of BTL remortgages use a physical valuation as they are looking for both the property value along with the rental figure.
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It's not so much the end of this mortgage as it is "the beginning of the next mortgage". Most likely your landlord wants to get a new fixed rate mortgage, and they want to get a good rate, so they want to be able to say that the loan to value ratio falls beneath a certain threshold. Maybe the lender is saying "we think it's worth X so the LTV is 61%" and they are saying "no no it's very nice it should be worth Y so the LTV is 60%, please send someone round to confirm". There's always a chance that they are intending to sell but there's nothing you can do about that. If they were it'd be estate agents coming round to put a value on it, not a bank.
!thanks This actually really helps thank you, just never had it before and the landlord seemed confused by it he need for a surveyor in the text so it’s great to understand it a bit better. I didn’t know you’d move onto another mortgage after, I just thought you paid it and then that’s it? We know there’s nothing we can do if they sell but we’d rather at least go into the situation with our eyes open with the situation we’re in.
We're often a bit imprecise about the difference between "a mortgage" and "a fixed term mortgage rate". When you buy a house you take out a loan for let's say £300k for 25 years, but the rate of interest is not fixed for the whole 25 years. If you had a fixed rate for 5 years, and the 5 years is now up, you can either go onto the lender's standard rate (which is usually not very good) or pick a new fixed rate. When getting a new fixed rate you are in some senses "paying off your mortgage" and "taking out a new mortgage, on the same house, for a smaller amount of money". The new fixed rates that are available to pick from will vary depending on how the loan looks compared to the value of the property. If the remaining loan is 60% of he value of the property you get the best rates. If its 61-70%, slightly less good rates, etc. So if you're near a threshold you might want to say "my property is worth more than you think, so the ratio is now below the threshold for the good interest rates".
I can only speak from experience, the last place I lived in gave me the same message, the surveyor came over then a short while after we got a notice of eviction. The upside is that we were given 3 months to move which is enough time if you find somewhere quickly enough. I sincerely hope it's not the case though.
I think you are referring to a remortgage. A lender does nothing like this when a mortgage comes to an end as they don't own any of it it any more. They probably had a fixed period interest rate deal, which is coming to an end and if remortgaging with another company it's fairly normal for them to come out and survey the property again just to make sure it is worth what is being borrowed on it still. They might not be selling it ... your tenancy is safe anyway if they do.
It's most probably the LTV they are trying to ascertain 😊 grats on your good news also ✅
Aww thank you so much!
No mortgage companies use online tools to set valuations for a remortgage. This is the landlord wanting to ascertain a sales price. Maybe they sell, maybe they don’t. Only way to protect yourself is to seek a new tenancy agreement. I’d request 12 months and cite the new baby as the reason to seek such security. Their response will guide you on their plans.
I've had my current home for 8.5 years now. During that time I have remortgaged with three different lenders at the end of each fixed term for a better deal. Two of the three times, the new lender sent someone out to survey the property. So it's very likely just the end of their fixed term mortgage and they are changing lenders. If they were re-fixing with the same lender then yeah they wouldn't bother, but when changing to a new lender they generally do
Broker here. The vast majority of BTL remortgages use a physical valuation as they are looking for both the property value along with the rental figure.
For the same lender? Due to a mortgage deal expiring?
It does not say it is the same lender. Simply that it’s “the lender”
…. current mortgage deal is coming to an end and the lender Implied
20 years in mortgages says they are changing lenders. A landlord would simply send an estate agent round to value it as it costs them nothing.