Estimaging Value of Property for Tax -vs- LTV Tracker Mortgage Valuation

MrEarl

Registered User
Messages
2,691
Hello,

Like quite a few of you here, I am the fortunite owner of a Tracker Mortgage.

As everyone will know, we were asked to provide Valuations on our homes when we obtained the Tracker Mortgages, in order to establish the appropriate lending margin (over ECB - which totals the lending rate).

What I would like to know is this - will either:

(i) Revenue provide our homeloan providers with detail of our estimated values on our houses (as a result of our submissions, for property tax purposes) ?

or

(ii) Will the Homeloan provider have the right to ask to see our estimated value and tax payment ?

Suffice to say, my questions arise as I am wondering if this new Property Tax could trigger opportunity for all of the Homeloan providers to increase the lending margins, on our Tracker Mortgages ?

Sorry if this has been covered elsewhere, but I have looked and not seen it discussed.

Thank you

Mr. Earl.
 
I would imagine that data protection issues might be relevant here - i.e. the valuation that you provide to Revenue is specifically for the purpose of assessment for the property tax and cannot/should not be used for other purposes or divulged to other parties (unless necessary - e.g. deduction from payroll, social welfare payments etc.). I can't see any obvious reason why Revenue would provide a mortgage lender with the property tax valuation. Unless there are arrangements for collecting the property tax via the lender which I doubt.
 
I'm also concerned about this. Particularly given that my lender is owned by the government.
Also If I was to apply to the bank for any kind of forebearance then the amount I pay for property tax, and therefore the valuation returned would be clear to them from my financial information.
Also it wouldn't be a massively big job for the bank to correlate their tracker loan book with revenue and daft.ie information. We all know how much the trackers are costing the banks - this is an easy way out of a lot of them.
 
Also it wouldn't be a massively big job for the bank to correlate their tracker loan book with revenue and daft.ie information. We all know how much the trackers are costing the banks - this is an easy way out of a lot of them.
This is not going to happen!!! There is no way that any bank will be trawling through Revenue property tax returns in order to find an excuse to exercise an LTV tracker covenant!! You may have your doubts, but be assured it won't happen!
 
I would imagine that data protection issues might be relevant here - i.e. the valuation that you provide to Revenue is specifically for the purpose of assessment for the property tax and cannot/should not be used for other purposes or divulged to other parties (unless necessary - e.g. deduction from payroll, social welfare payments etc.). I can't see any obvious reason why Revenue would provide a mortgage lender with the property tax valuation. Unless there are arrangements for collecting the property tax via the lender which I doubt.


Hello,

Under one possible scenario, the Bank could ask to see certain financial information (which it is entitled to see) to include your tax submissions and by extension, see your submission to Revenue for the Property Tax.

Suffice to say, with the apparent cost to all of the Banks in funding these low rate Tracker loans, it would be advantageous to find ways to increase the lending rates (sorry 44brendan, I simply think you are incorrect if you don't believe the financial burden on the banks in funding these mortgages, justifies the possible associated work involved )

Regards

Mr. Earl.
 
There is so much hysteria going around about this.

Have you looked at your mortgage agreement? Does it say anywhere that your tracker rate might be changed due to LTV changes post granting of the mortgage?

Even if it does, which it won't, why do you think it would only be addressed now post LPT rather than in the last 3 years?

Why don't you call the Data Protection Commission and ask them if they're planning on letting the banks and Revenue ignore the legislation in this area?
 
Back
Top