Prices of apartments, does everyone get them for same price?

[FTB81]

Hi all,

Just wondering if anyone knows if everyone is offered apartments for the same price? For example if the purchase price of a place is €2o0k, but you manage to get mortgage approval for say €250k, will the council charge you €250k to buy it?
Thanks!

 

[Bob_tg]

FTB81 - your question is not entirely clear.... I'll have a stab at answering, though: If the purchase price is 200k you will be charged 200k by the seller, not the council (unless the council is the seller). Mortage approval has nothing to do with it.

 

[xb_deai]

Do you mean does the council charge you at the max level at which you can get approval? If so no the LA will set the market value then apply the discount it is this figure you then apply for a mortgage at. It is the same as a normal sale in this respect the council will give you a letter once you are approved by them (in theory) showing the cost of the property to you and the banks work off this.

 

[Bronte]

Mortgage approval of 250K does not mean you will get 250K. It just means the bank think that you can afford 250K. If you are purchasing a home you will generally get 90% of the purchase price from a bank. Not sure if there ate 100% mortgages but I believe there are no mortgages of more than 100%.