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LTV question?

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  • 08-07-2012 11:50pm
    #1
    cob655
    Registered Users Posts: 53 ✭✭


    Hi, say for example a house is for sale for €250k but the banks values it closer to €350k after a valuation,Would the bank in that instance grant the €250k (100% mortgage) as the loan is less than 92% of the value??

    I have a deposit,but just something I was wondering about, like was it based on the asking price or the valuation.


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    #2
    P. Breathnach
    Registered Users Posts: 12,089 ✭✭✭✭P. Breathnach


    They will almost certainly use whichever is the lower of the valuation and the actual selling price (which might be above or below asking price - more likely below).


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    #3
    cob655
    Registered Users Posts: 53 ✭✭cob655


    thanks


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    #4
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    cob655 wrote: »
    Hi, say for example a house is for sale for €250k but the banks values it closer to €350k after a valuation,Would the bank in that instance grant the €250k (100% mortgage) as the loan is less than 92% of the value??

    I have a deposit,but just something I was wondering about, like was it based on the asking price or the valuation.

    Where a purchase being completed the banks valuer won't value the property over and above the agreed purchase price unless it's a sale to family members at below market value. The bank will always lend 92% of the valuation or the contract price - whichever is the lessor.


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