BoI will give you a cheaper rate than the quoted rate if you ask

[time to plan]

In my experience they are extremely conservative as they are relying on the bank for repeat business, not you.

They undervalued my house by about 10% compared to what the CSO house price index would have implied.

I hope you used their valuation for the LPT.

 

[DublinHead54]

In my experience they are extremely conservative as they are relying on the bank for repeat business, not you.

They undervalued my house by about 10% compared to what the CSO house price index would have implied.

I can second this and it is rather baffling that the valuers are performing an additional credit risk protection service for the bank.

In my case the valuer was an EA, and he told me the value he would put in the market for if selling which was ~30k more than what he valued it for the bank.

 

[NoRegretsCoyote]

I can second this and it is rather baffling that the valuers are performing an additional credit risk protection service for the bank.

I can't see how an EA will do a better job than model with some inbuilt margin of conservatism. Unless you've demolished half your house then it is going to be worth more or less the sale price plus any uplift from the CSO property price index, particularly over short periods.

In my case the valuer was an EA, and he told me the value he would put in the market for if selling which was ~30k more than what he valued it for the bank.

Years ago I needed a valuation for the Fair Deal, and from memory the higher the valuation the better. I rang up one EA to look for a valuation. He sent me one that day in the post for easily 30% more than it was worth without even viewing the property!

 

[DublinHead54]

I can't see how an EA will do a better job than model with some inbuilt margin of conservatism. Unless you've demolished half your house then it is going to be worth more or less the sale price plus any uplift from the CSO property price index, particularly over short periods.

It is a bit of a double count, because I assume the LTVs are an input into the credit risk models bank have but if those LTVs are off because lower values are provided well then its over estimating the Credit Risk. Though I am probably suspect this is counteracting by using the CSO property price index in their models as well to smooth out the valuation errors.

It didn't impact my LTV but it will impact my top up amounts.

 

[NoRegretsCoyote]

@Dublinbay12

Maybe it's a kind of backstop and they choose the worse of either the model or the valuation.

I suspect it makes sense still because staff either won't have the tools to make a model-based assessment or won't know how to use them. A valuation is kind of tangible and simple to work with in a way that a model-based estimate just isn't.

 

[DublinHead54]

@Dublinbay12

Maybe it's a kind of backstop and they choose the worse of either the model or the valuation.

I suspect it makes sense still because staff either won't have the tools to make a model-based assessment or won't know how to use them. A valuation is kind of tangible and simple to work with in a way that a model-based estimate just isn't.

I think the bank has a crude model to take the valuation provided and stress it by 10-20% and then evaluate against the applicants information provided. I saw this in a spreadsheet when at a mortgage appointment with BOI, it was very crude. So I don't think the EAs should need to apply conservatism as the banks will do it through stress tests etc. I could of course say the EA will overvalue your house in a bid to get your business when selling.

In grand schemes its probably not a massive issue but still can be frustrating especially if it impacts your LTV buckets.

There probably is also an argument that this impacts banks capital held against mortgage portfolio, their profitability and ultimately the rates consumers are offered, but thats a stretch.

 

[Tickle]

One thing which can be easily overlooked by a model, and easily detected by a valuer, is the actual existence of a habitable dwelling.

 

[Skyler White]

In fact it's more like 2.8%! I called Bank of Ireland a few weeks back and they will give a 0.1pp reduction on all rates on request. Maybe more if you threaten to switch.

That request will save most people more than they pay in bank charges.

I was just on to Bank of Ireland today looking for a better rate than their offer of 2.9%. There was absolutely no movement even when a manager called me back. Our house has nearly doubled in value since our purchase.

I informed the manager that their letter was very misleading as it inviting customers to contact the writer (senior manager) to discuss ANY aspect of our mortgage, which presumably includes the rates being offered given they are the main substance of the letter. I asked to speak to the writer of the letter but was informed he worked in a back office??

Anyway, I was starting to lose the plot with them. Back to Avant Money it is.... Just thought it would be helpful to update the thread on the current impasse with BOI.