Mortgage:Buying Off Plans

[longsightm13]

I am a FTB thinking of buying off plans. Given that the value of the property may well have increased by the time it would be completed,would a 92% mortgage be calculated off the original purchase price or what it may be worth when it is complete?

 

[CCOVICH]

You can only get a mortgage for the price of the property as per the contract price AFAIK.

You could try remortgaging once you have drawn down-but this probably won't be possible immediately.

 

[Guest107]

It will quite likely go down by this time next year if thats when completion is due ( my opinion only ) , don't presume it will go up by the time you move in and you not even in there .

Its 92% of the purchase price now and a valuer is sent out by the bank to see if the purchase price is reasonable today .

 

[kasko]

It will go up. If you think the increase is going to be less than 10 percent for the second half of this year, then Paddy Power is good place for you. They offer 3/1

 

[whathome]

92% is calculated on the purchase price. With rising interest rates and a rapidly weakening market, it's not advisable to expect increases in the value of property.