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Another LTV question...

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My partner and I took out a mortgage last year with HSBC for 90% LTV. At the time HSBC had a better rate based on a LTV of 80% but we did not have sufficient funds available to finance this.

A year on and now HSBC have a better rate available fee free for a LTV of 85%.

My question is how will HSBC determine my current LTV on the property? Will they require a valuation or will they do a desktop calculation? If it is a desktop calculation will they look at the purchase price of my house and increase/decrease with respect to a relevant property index?

I am hoping that as we have paid off some capital and we have savings that we can use too, we will be able to qualify for the 85% LTV rate.

Thanks

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