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LTV & Valuation

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  • 02-12-2008 1:57pm
    #1
    steamjetjoe
    Closed Accounts Posts: 396 ✭✭


    Hello all,

    I was considering switching mortgage to Aib. Their LTV is at 92% which would put the value of my house at E290,000 but the current value of my property judging by a quick scan at the local auctioneer values it at around E235,000

    Am I screwed for switching??


    Thanks all


Comments

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    #2
    kaiser sauze
    Registered Users Posts: 1,558 ✭✭✭kaiser sauze


    Yes, if your research is accurate.


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    #3
    Ogham
    Registered Users Posts: 1,844 ✭✭✭Ogham


    What is the amount of your mortgage ?


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    #4
    steamjetjoe
    Closed Accounts Posts: 396 ✭✭steamjetjoe


    Ogham wrote: »
    What is the amount of your mortgage ?

    About E265,000


  • Options
    #5
    homer911
    Registered Users Posts: 5,119 ✭✭✭homer911


    You've answered your own question..


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    #6
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    Afraid you're in negative equity. You won't be able to do SFA until you've knocked a good figure off that balance or the housing market picks up.

    There is a serious problem with this at the moment. The banks that gave out the dodgiest loans and were pushing the 100% LTV, and gimmicks etc (ie, permanent, iib, first active etc) are now, by far, the most expensive (compared to the likes of AIB/BOI etc), as they know the majority of their customer base cannot afford to switch:mad:.

    And don't get me started on the official Sub-Prime lenders!


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    #7
    IsThatSo?
    Closed Accounts Posts: 988 ✭✭✭IsThatSo?


    Look at it this way, another bank is not going to lend you an amount higher than the value of your house. If you default on payments they cannot recoup losses from the sale of the house. Rotten situation, but thats how it is :(


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