Mortgage evidence guide
Remortgaging: know your LTV before the lender does
Remortgage pricing is a staircase, not a slope: rates step down at loan-to-value thresholds. Because many remortgage valuations are automated from registered sold-price data, you can preview your own valuation using the same public evidence (HM Land Registry, data through August 2026) — and act months before your fix ends.
Estimate your LTV in three steps
- 1. Anchor your value with street evidence. Open your street page and note what comparable homes have actually sold for recently — then the postcode and outcode pages for a wider sample. Weight recent sales of similar size and type most heavily, and be honest about condition differences.
- 2. Get your exact balance. Your annual statement or online account shows the outstanding balance and any early repayment charge window.
- 3. Divide and place yourself in a band. Balance ÷ estimated value = LTV. £150,000 outstanding on a home the local evidence supports at £240,000 is 62.5% — close enough to the 60% band that a plan (overpayment, or simply a realistic valuation discussion) might reach it.
Why the bands matter more than small rate moves
Two borrowers with identical homes and incomes can pay meaningfully different rates purely because one sits at 82% LTV and the other at 79%. Crossing a band changes the price of the whole loan, which is why a few thousand pounds of overpayment near a threshold can outperform the same money anywhere else. The three questions that decide it: How far am I from the next band? What does the local sold evidence say my home is worth today? And does my early repayment allowance let me make the move before switching?
If prices have moved against you
Falling local prices can push LTV up, not down — sometimes past 90% or, in bad cases, into negative equity. If your street’s recent sales sit below what you paid, know that before applying: a product transfer with your existing lender (usually no new valuation of consequence) may beat a remortgage to a new lender that revalues you into a worse band. This is exactly the situation where checking the evidence first changes the decision.
Worked example: how the same mortgage lands in different LTV bands
LTV depends entirely on where you live, because it is your outstanding loan divided by the local market value — not the national average. The numbers below use real 2025 average sale prices for the two busiest markets from our market report (HM Land Registry, data through August 2026), with a hypothetical £200,000 outstanding mortgage:
In Greater London, where the average sold price was £746,016, a £200,000 loan against a home at that value is an LTV of 27% — comfortably inside the cheapest sub-60% band on most lenders' rate tables.
The same £200,000 loan in Greater Manchester, where the average sold price was £291,765, works out at an LTV of 69% — a different pricing band entirely. One address can therefore be remortgaging at 60% while an identical loan elsewhere sits at 70%+, purely because of local sold prices.
The practical takeaway: check the registered sales for your own street and postcode, not a headline average, before your fix ends — that is the same local evidence automated valuations are built on.
Important limitation
Sold-price evidence supports an estimate, not a formal valuation, and LTV band structures vary by lender. Remortgage decisions should involve a regulated mortgage adviser; this guide is general information only.
Check your local evidence
Frequently asked questions
What is loan-to-value (LTV) when remortgaging?
LTV is your outstanding mortgage divided by the current value of your home. Lenders price remortgage deals in LTV bands — commonly at thresholds like 90%, 85%, 80%, 75% and 60% — and dropping into a lower band typically unlocks a cheaper rate.
How do lenders value my home for a remortgage?
Many remortgages use automated or desktop valuations driven by local registered sold prices rather than a physical visit. That is why checking recent sold prices for your own street and postcode gives you a good preview of the number the lender is likely to use.
What if the lender values my home lower than I expected?
A lower valuation can push you into a higher LTV band and a worse rate. You can usually challenge it with evidence of comparable recent sales, or consider a lender that instructs a physical valuation — documented improvements can also help there.
When should I start preparing to remortgage?
Around six months before your fixed rate ends. Most lenders let you lock a new deal several months ahead, and knowing your likely LTV band early tells you whether a small overpayment could drop you into a cheaper band by the switch date.
Can overpaying my mortgage change my remortgage rate?
Yes, if it moves you across an LTV threshold. If your estimated LTV is just above a band boundary — say 76% — a modest lump-sum overpayment before remortgaging can bring the whole loan onto the lower band’s cheaper pricing.