How do I get valuation below 60% for a better rate?

siulas

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Hello,

I'm planning to switch from AIB variable rate to KBC for their new fixed rates but have few questions in regards to valuation and such.
Could I push Valuer to to value property just a bit more so I can get in <60% bracket?
When switching mortgages, could I top up remaining mortgage from savings for that same reason, so i can get into <60%?
 
What do you think the house is valued at? (based on similar in your area)
Will this get to the <60% LTV?
If you're on variable rate, you can money against your mortgage from savings to get below the <60% LTV. You should do this before you apply to KBC to guarantee the better rate.
 
If you have savings which you have not earmarked for something in the near future, you should be paying down your mortgage anyway,whether you switch or not.

If your house is valued at €200k and you borrow €125k, then it will be a <80% LTV mortgage.

If your granny lends you €6k to bring it down to €119k, then it will be a <60% LTV mortgage.

So yes "you can top up remaining mortgage" - by which you mean reduce the remaining mortgage I presume.

Brendan
 
Could I push Valuer to to value property just a bit more so I can get in <60% bracket?

That is a tough one. They should value the property at what they think it's worth and not at what you would like it valued at.

But if it's very close, I imagine that you could ask them nicely.

Brendan
 
But if it's very close, I imagine that you could ask them nicely.
When my valuer done mine, he asked me was there any specific valuation I required, and I said no. I would fall into the lowest bracket either way.

That said, he provided a very low valuation for the house. It was 15% below what I would have considered a realistic value at the time, given the prices neighbour's sold for at the time.

I think you will find valuers from the bank tend to value lower than if you were looking to sell the house :)
 
Could I push Valuer to to value property just a bit more so I can get in <60% bracket?
In a similar situation I told the valuer on arrival that I needed the house to be worth at least X as the point was to get a better rate. It probably was worth X anyway but I wanted to eliminate any doubt. They got paid, bank was happy, I was happy. If they valued it less than X I would have paid the difference off the mortgage to get the rate.

I didn't want it valued at much more than X either, to avoid any possible knock-on effect on property tax.
 
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That is a tough one. They should value the property at what they think it's worth and not at what you would like it valued at.

But if it's very close, I imagine that you could ask them nicely.

I did this many moons ago when switching from EBS to Ulster, told the guy straight up the minimum I needed. Politness gets you a long way. But of course the difference wasn't much. You can't be asking for a crazy figure.
 
They are giving estimates based on the number of bedrooms, size of the property etc and comparing it to other valuations in the area. If you are close, they will help you out but don't make unreasonable demands. Valuations is a numbers game. They don't get paid much for a valuation so they need to stay on a banks panel to keep the inflow going. They won't risk being kicked off the panel for giving vastly over inflated valuations.
 
In a similar situation I told the valuer on arrival that I needed the house to be worth at least X as the point was to get a better rate. It probably was worth X anyway but I wanted to eliminate any doubt. They got paid, bank was happy, I was happy. If they valued it less than X I would have paid the difference off the mortgage to get the rate.

I didn't want it valued at much more than X either, to avoid any possible knock-on effect on property tax.
Yeah, I was just thinking about this, would there be any downsides to get it valued a little bit higher?...
 
Also told the valuer what figure i was looking for when switching and luckily there were other houses in the estate (albeit slightly bigger or with more work done) that had similar or higher prices when they sold so he put it through. It wasn't unrealistic and still way less than we paid for it, but think it depends on the valuer you get.
 
I have another question in regards to this.
If I pay 10000euro towards mortgage and I have 120000 left, will that knock off 10000, or some of that money will go towards interest?...
 
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