evaluations on your property

[carrieann]

Hi Homeboy,

Ive been trying to contact them, but no answer you know how our councils are.

Also heard back from the bank, they said they will give me and my partner a mortgage for 305. But my house will only be valued at 360, this doesn't seem as bad if the clawback was reduced by the council

I know I said we dont plan to sell, but thats not the point, the clawback is higher then it should be. Hopefully Ill have luck with them, If we where to go ahead,we'd still be getting 55 off the market price instead of 75

 

[Cheeus]

The bank said they wouldn't give me a mortgage because its over priced and doesn't fall under the affordable housing agreement,

Hi Carrieann

This doesn't sound right at all. It shouldn't really matter to the bank what the market value is because your mortgage is based on the reduced price, not the MV. It would be understandable perhaps if it was so over-valued that real market value = the affordable purchase price.

What bank are you with? Try another lender. I had this exact conversation with First Active a few days ago and they said if valuations came back lower than council valuations that it would be up to me to continue or not. It does not effect what they'll lend me. If the property is over-valued by a few thousand it doesn't matter to them. You are protected against negative equity as long as the price doesn't fall too much, so the bank doesn't lose unless it is grossly over-valued.

Seriously, go to another lender. Even just ring around the other providers of affordable mortgages and explain the situation. They should be able to give you quotes over the phone. Were you dealing with Bank of Ireland? I had a smiliar situation with them last year where other lenders didn't care. Other banks view it differently. Good luck!

 

[carrieann]

Thanks for everyone for getting back to me.

The situation as it stands.

The bank are still giving us a mortgage of 305. I have sent a copy of the valuation report to the council who are going to review it and may reduce the claw back % which isn't to bad, to match the value.

The valuation from the council was 380 - 20% claw back would make it 305
But if they review with the banks valuation of 360 - 15% claw back would make it 305.

This is the house of our dreams, its rarely you get a pick of 18 houses with the affordable housing scheme, and because we q'd all night we got first pick.