How to value a house for switching mortgage

M

McNulty

Registered User
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Hi

I imagine this is something that a few people are facing so I'd like to get some feedback suggestions please?
I'm coming to the end of a fixed rate (mid August) with PTSB at 4.69%. This has served me pretty well over this time, however it's looking like their rates will be pretty uncompetitive when my rate ends so I'm exploring moving to another lender.

My problem is equity/valuing the house. No houses on my estate (only 150 houses) have sold from what I can see in the last six months and I don't think any are actually on the market so I don't have an idea of what the house would be valued at. It may seem like a relatively small amount, but I don;t want to fork out €150 to a bank for them to come and value the place only to be told I'm nowhere near 92% LTV needed to get a switch.
On the ability to pay front, the banks online calculators give me the ability to pay at well over what I need. Do they take that into account or is it all about the LTV?

Any suggestions/feedback gratefully received!

Jim
 
If you are switching, you'll need a house valuation. If you are moving within the same bank to an LTV mortgage, you'll also need a house valuation. Banks have a roll of valuers that they accept to give valuations. Your income won't affect the switching question if the house is in negative equity (but will, obviously, for mortgage approval).

You'll have to spend the €150 to get a valuation if you want to switch banks or switch to an LTV mortgage with your existing bank. That said, I had that exercise done last summer and the bank's valuer valued the house at a staggering €410k when two local estate agents (at the same time) ranged from €320-€375k so you may be pleasantly surprised with the bank's valuation (so long as you don't care that it's not based in reality!)
 
What did you buy it for and when - and what part of the country is it in.? What is mortgage on it?
 
The house is in a relatively mature estate (built around 2000) and is just south of Drogheda in Mornington

We paid 310,000 for it in August 2006, however that price was agreed in December 05 and prices did peak at around 370,000 in December 06 from what we could see.

We had a 100% mortgage on it, hence still owing about 308000 (How depressing are mortgage statements!)

Was actually chatting to a local estate agent last night and he said he thinks they would probably sell for about 280000 based on anything recent he's done, however he also said that this is because people are putting in lower offers.

Bit confused really - are any banks doing 'free' valuations so I don;t have to cough up the initial risky €150? (or am I just being tight)

Cheers

Jim
 
According to this in the [broken link removed]av house prices are back to 2005 levels.
If your mortgage is 308k I don't think any lender will give you a mortgage unless the valuation is at least 330k. It sounds like that is unlikely - but if it could save you a few hundred a month you will only find out for sure with a valuation. (Halifax give the valuation fee back to you if it is successful)
 
Your house would have to be valued at 335000 in order for your mortgage of 30800 to be 92% of that (circa). An estate agent has told you he thinks houses are worth 280000. I fail to see how you are going to be able to bridge the gap of 280 to 335 with a banks valuer.

If you can why don't you try and overpay the mortgage when you come off the fixed rate in order to get your mortgage to property value down asap and then you will have more options.

Do not worry about the mortgage statements, the first few years are always the hardest as little capital is being repaid, it gets better as time passes.
 
It sound like you are in "the paper negative equity trap" like a lot of people. If you can't improve your rate with yr existing lender stick with them as you are not likely to get a loan from else where. (however, not knowing any of yr other Finiancila info this may not be true)

Over pay that mortgage as much as you can to get the balance down.

Repayment over a long period (25years+) looks greats on a monthly basis as people can "afford" the repayments. Its when they realise how slowly the debt comes down (due to huge amounts of interest) that people start to wake up! This is more noticable to people when house prices are falling not going up.
 
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