First Time Buyer Queries

[P27]

Hi All,

I was wondering if any of you ever came across a situation like this, AIP for €300k - 92%ltv. The house is for sale for €270k, could we get the full 300k and use it to buy the house,furniture and clear existing loans of €25k. How would a broker organise something like this or is it even possible in today's world.Thanks

 

[cromulent]

So you're looking for a 111% LTV mortgage? Good luck with that.

 

[WaterSprite]

Banks will take valuation and purchase price into account when you finally purchase. So if you've been approved for a 92% mortgage (this isn't an investment prop, right?), you'll get 92% of the final purchase price, but not more without a different mortgage approval. The AIP is done based on an upper estimated value but it's the %age that matters.

Sprite

 

[irishlinks]

On a recent RTE Prime Time about mortgages - there were hints that there may be brokers out there who (against all regulations) will work with dodgy estate agents and valuers to maximise mortgages in this way - by basically giving high valuations or lying about the purchase price. It is obviously not honest to obtain a mortgage on a property by lying about the value and/or the price actually paid - but I suspect it does happen.

 

[P27]

Hi,

I agree that this is indeed dodgy broker conduct but I have a feeling it does go on. Im suprised there are not more bank checks in place to act as a safeguard against it.

 

[rmelly]

plus it's debatable whether doing this is in your own interests.

 

[MugsGame]

Surely this would also require a solicitor to give a misleading undertaking to the bank regarding the destination of the mortgage cheque?