Mortgage switch advice

[FCBC12]

Hi,
Thinking of switching mortgage provider (currently with UB @ 2.6% to end of 2024). The AIB Green 5-Year LTV Fixed>50%<=80% @2.1% (with €2,000 cashback) is what we have our eyes on. Did a quick break fee check and it is worthwhile to switch, accounting for legal fees also.

Our LTV is still above 80% however.

(i) With ongoing inflation, would banks take account of a house revaluation by a third party? I would expect this valuation to bring the LTV below 80%, as a similar house on our street was sold recently for an amount that would more than cover the threshold.

(ii) Alternatively, I can overpay my mortgage now (by 10% p/a) which would also bring the LTV below 80% but I'm conscious that we hope to upsize our home in 5-6 years and would like to have 20% available for that and not tied to the first property. This could well be flawed logic mind you as I likely havn't thought through the short term cash flow process of switching homes!

Any advice is appreciated. Thank you.

 

[misemoi]

When you switch you will need to get a valuation by a valuer on a list provided by the bank. So apply for a 80% loan to value & the valuation will probably come in at the same, unless there was a material difference between the two houses.

 

[_OkGo_]

i) With ongoing inflation, would banks take account of a house revaluation by a third party? I would expect this valuation to bring the LTV below 80%, as a similar house on our street was sold recently for an amount that would more than cover the threshold.

We switched to AIB's green rate earlier this year. Regardless of who you go with, each bank will either arrange a valuation or give you a list of approved valuers for you to use at a certain point in the switching process.

In our case, and I presume this is the same in most cases, the auctioneer who valued our house asked us what figure we needed for the LTV and they told us there and then it was no problem. They just went and picked 3 recent sales to back up that value. So as long as the figure you have in your mind is realistic, the auctioneer is unlikely to have a problem with matching it for you.

As for point (ii), you probably need to provide more info on property values, mortgage amounts, income level to get useful feedback. Basically the info required for the moneymakeover section of AAM