Loan To Value

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admoriarty

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Just wondering who decides the value in loan to value, in recent talks with my mortgage lender my LTV has dropped hugely, and while I'm not too ignorant to imagine why I'm wondering who was able to make an accurate revalue of my home?? Or who decides the index?
 
Sorry maybe I wasn't clear, the apartment was valued over two years ago when I bought so I appreciate who values it then. What I mean is its now valued down significantly and I'm wondering on what basis or from whose figures the bank index these ltv's?
 
Sometimes lenders will ask the valuer who did the original valuation to do a drive by in order to assess the current value of your home.

It's probably best to ask the lender directly how they have come to assess the current value of your home. They might have just done a check on myhome or daft.
 
This is why I'm concerned, I know I didn't request and I'm pretty certain they didn't assign a valuer to look at my home, since I heard of the drop in LTV in the very first conversation I had with a particular consultant in December. They have since mentioned it being an "indexed ltv", but have they the right to mark down the value of my home because the average price on daft has dropped by X% for example. Can I request a proper revaluation or otherwise the original value must stand? Maybe this is all hidden in terms and conditions but I'm interested to see if anyone else has an experience of it. I've gone from 80.5 ltv to approx 97 ltv because of their indexing....
 
Instead of going around in circles........

How much is outstanding on your mortgage - the capital amount?
How much do you realistically think your house is worth?

When you do your own LTV - is it significantly different to what the bank are now saying?

If yes, you may have some grounds for discussion. If no - does that not rather deal with the overall issue?

mf
 
What I feel is...of the 6 apartments of the same size and style to mine in my block, mine was the last one sold, over 2 years ago, so even I can't put a real 'today' value on it, and aside from my opinion of whether what I bought was different to most in the area and has its own unique draw, I can't understand the bank throwing a random deduction on the value based on national or regional averages.

How would I do a LTV realistically? Compare the percentage drops on other dissimilar apartments in the same block or locality...I can try but its hard to say what things sold for recently, people don't generally want to say!

Aside from all that, I'm not going around in circles because I am curious how indexed ltvs work, and I still haven't gotten an answer yet (though I appreciate all replies)
 
We had the bank's valuer out to visit to value the house - he decided the value based on similar houses in area and what they were asking and the current market. He was pretty ruthless - still in shock regarding how much value has gone down!
 
kudos said:
We had the bank's valuer out to visit to value the house - he decided the value based on similar houses in area and what they were asking and the current market. He was pretty ruthless - still in shock regarding how much value has gone down!
Click to expand...

So were the bank still quoting your old value until this new inspection was done (what I'm getting at was did they say it 'was' worth X, we're guessing its less now but we wouldn't just guess how much, an inspection is needed)
 
I am on a tracker and was looking for a top up - hence the valuation. No mention of LTV from bank before this arose
 
Personally I reckon you are very lucky if you LTV on an apartment has only increased by 16.5% over 2 years, also I think the bank are more than entitled to put a value on what is their security for your loan. I would suspect that a valuation would only increase the LTV further and probably show negaitve equity. not whatyou want to hear but as most people are now learning, this is the reality. As for similar properties on myhome and daft, if using as a comparison, you would need to be reduce by at least 10% to use as any kind of true indicator.
 
Back to the question...not a discussion of the housing market

How does a particular lender pluck an updated LTV out of thin air for a particular property without it being revalued??

Thats it, I don't need to be informed of dropping property values (I ain't selling), negative equity or anything else. I asked does anyone know where the bank get their index from? Its really simple you either know or don't, does anyone? I'm even more curious now since I thought it would be more commonly known...
 
Call your lender and ask as you will just get opinion here.

Let us know what they say.
 
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"How does a particular lender pluck an updated LTV out of thin air for a particular property without it being revalued?? "

I assume they regularly evaluate their loan book to see the average LTV. They take a view, ask a valuer to give a rough idea, write down values as per various published reports, compare with the 100's of other similar type properties they have on their loan book.............

I don't think you're going to get the scientific, cast iron argument you're hoping for.

And anyway, on this board, you can expect to be asked questions when you pose a question. So, lets try that again:

When you do your own LTV - is it significantly different to what the bank are now saying?

mf
 
NorfBank said:
Call your lender and ask as you will just get opinion here.

Let us know what they say.
Click to expand...

Will do so next time I'm on the phone, which is a struggle but maybe its just the particular "consultant" I'm dealing with....I'll update here with whatever I find out, I'm doing my best to change terms slightly to try to give them a fair bit more of my money in their coffers every month(in relative terms), you'd think they'd be cooperative....think again (not talking about LTV here just lenders general attitude)
 
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