Getting more than 92%

J

jpeast

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Is this still being done???? bought property worth 190k for 160k needs about 10k to make it totally livable. We were approved for 240k what are the chances of the bank lending that ontop of mortgage???
or would you just tell them you bought it for 175k. (sorry this is what my friends told me to do but im not sure)
 
Let me try and understand this, you have had an offer accepted for 160k on a property valued 190k? You need another 10k to make it liveable?

Despite what you were initially approved for, the bank will get require a valuation report from a valuer that they have approved and is on their panel to give an estimation of the house. You can't 'just tell them you bought it for 175k'

Find it unlikely that you will get more than 92% anywhere and the valuation will reflect the state of the hoouse and whether it needs improvements.
 
The property isn't worth 190k it's worth what you paid for it - 160k. If you were approved for 240k presumably this means you have 28k in savings? So where's the problem?
 
Thanks for that but what if the valuer is happy the house is worth 190k?? With 'livable' i might have made it sound worse than it is. we could move in straight away but lots of work to do so we will be happy with house.
 
if the valuer tells the lender that it's worth 190k then you should get 92% of that, it's a very big if though. i still can't understand how if you were approved for 240k that you don't have 28k in savings.
 
yes we have but would like to use whats left of those funds for a personal health issue. I just didnt want to lie to bank like my friends have told us to do incase we were refused the mortgage then.
 
Sorry to hear that there may be underlying health issues. Your best bet is to be honest, because these things can come back to haunt you down the line.Speak to a Mortgage Advisor and see what they can do with regards to your situation.
 
1. The house is worth what you paid for it.
2. The price will be on the contract. The contract, loan offer and loan application should all have the same price. If they don't, someone is either telling lies or choosing to be economical with the truth.
3. Lying to a bank is a bad and silly thing. So is being economical with the truth.
4. Banks are not in the business anymore of lending more than a house is worth. If the house was only worth what you paid for it when you bought it, it is hardly going to be worth more when you pump more of the bank's money in to it. Strange but true.
5. You don't have to do what your friends tell you. You can make your own mind up.
6. If your figures don't stack up on this house, don't buy it. Buy another one. Far simpler than digging yourself into a big hole and looking for a way out down the line.

mf
 
thanks guys. i didnt want to tell lie's, has made me very worried last 2 days. we are going to get loan in few months, the Cost if we had got extra on mortgage were so silly.
Oh and you are correct a house is only worth what you pay however if your quick and make a solid offer with no strings then you get bargin!!!
It's our first home so thats why we were so clueless:):)
 
Sorry jpeast.

The Valuation of the Property is neither here nor there, if you have agreed a price with the vendor below this figure.

In this case, your Bank, if they are giving 92% Mortgages (I think only AIB and EBS to FTB's at the moment) will base the loan offer on 92% of what you have agreed to pay for the property,as long as this does not breach the 92% ceiling.

You will never again, under any circumstances, get a Mortgage on a property based on 92% of a Valuation, which brings the Mortgage to >100% of the price you are paying.

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EDIT: Sorry, I did not see the bit in your OP about this being for a top-up loan. Was the original Valuation for €190K, when was that?

Top Ups can have a lower overall LTV, as an existing customer, so the 92% would be extremely difficult.

There would also be the situation of your Mortgage Protection Policy, if you have Health issues, you must ensure that the Policy is for enough to clear the Full mortgage, including any second Mortgage (Top-Up). Have you considered this?
 
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