When you’re remortgaging, the value of your home could be just as important as the amount you need to borrow. In fact, it could help you secure a better mortgage deal.
The value of your home might have increased more than you expect. According to Land Registry data (1 August 2026), between July 2021 and July 2026 the average property increased in value by more than £40,000.
Here are four reasons to assess the current value of your home when you’re searching for a new mortgage deal.
1. A lower loan-to-value ratio could lead to a competitive mortgage interest rate
The value of your home will affect your loan-to-value (LTV) ratio, which could have a direct impact on the interest rate of the mortgage deals you’re offered.
The LTV compares the size of your mortgage against the property value. If your home was worth £400,000 and your outstanding mortgage was £300,000, you would have £100,000 of equity, equivalent to 25% of the property’s value. In this scenario, your LTV would be 75%.
Lenders usually view homeowners with a lower LTV ratio as less of a risk, so they may be offered a deal with a lower interest rate. Even a small difference in your mortgage interest rate could affect your monthly outgoings and the cost of borrowing over the full mortgage term.
Imagine you have a £300,000 repayment mortgage with a term of 20 years:
- With an interest rate of 4.5%, your monthly repayment would be £1,897 and you’d pay £155,359 in interest over the full mortgage term.
- With an interest rate of 4%, your monthly repayment would fall to £1,817 and you’d pay £136,154 in interest over the full mortgage term.
In this case, the interest rate falling by just 0.5% would save you more than £19,000 over the full mortgage term.
Assuming you have a repayment mortgage, your LTV will fall as you make repayments and if the value of your home increases. So, valuing your property when you’re remortgaging, particularly if you’ve carried out renovation work, could potentially save you money.
2. Assess the value of home improvements
Since your home was last valued, you might have carried out home improvements, such as refreshing your garden, converting the loft, or decorating living spaces. Having your home valued by a professional could help you assess whether it’s delivered a return.
This could be useful if you’re thinking about selling your home in the future or want to calculate if doing further work would be worthwhile from a financial perspective.
3. Check how much you could borrow
In some circumstances, you might want to borrow money and you may be able to access a larger sum by increasing your mortgage. This could help you fund large expenses, such as renovations.
How much you could borrow through a mortgage will depend on the value of the property as well as other factors, such as your income and other financial commitments. So, valuing your home ahead of remortgaging could help you assess all your options.
Remember that a mortgage is a loan that’s secured against your home. Be sure that the repayments are affordable. Missing repayments could place your home at risk, and the property could be repossessed to recover the unpaid debt.
4. Calculate if your insurance provides appropriate cover
When remortgaging, it may also be worth checking that your buildings and contents insurance remains appropriate. Buildings cover is generally based on the estimated cost of rebuilding the property rather than its market value, while contents cover should reflect the value of the belongings insured.
Contact us
As mortgage advisers, we could help you find a new mortgage deal that suits your needs. Please get in touch to arrange a meeting.
Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
Approver Quilter Financial Services Limited. 10/09/2026