Mad Bad Babs
Registered User
- Messages
- 16
Hi
I am currently in the process of getting a second mortgage. i am going to rent out my current home and buy a new one.
I have approval in principal with one lender which a few conditions one being: They have queried my LTV on my current property. LTV must be 90%. I owe €149,700 on current mortgage and i thought my house was valued at approx 190K.( i had it on the market and consulted with 3 EA's re: value) so this is what i put on the loan application. The underwriters have stated that when they did a search which was 'index linked' my property is only valued at 165K.
In order to draw down on the mortgage i have to top up my current mortgage balance by 3k to bring the LTV to 90%.
Does anyone know where the banks/underwriters get this 'index based' valuation from? What does 'index based' mean?
I know i should have queried this when i was on the phone to lender but i was so relieved to get approval in principal i didn't take to much notice of having to top up my current mortgage balance by 3k but now i am annoyed because there seems to be a huge difference. Also a house the exact same as mine on the estate has gone sale agreed at 185K in last month.
I am currently in the process of getting a second mortgage. i am going to rent out my current home and buy a new one.
I have approval in principal with one lender which a few conditions one being: They have queried my LTV on my current property. LTV must be 90%. I owe €149,700 on current mortgage and i thought my house was valued at approx 190K.( i had it on the market and consulted with 3 EA's re: value) so this is what i put on the loan application. The underwriters have stated that when they did a search which was 'index linked' my property is only valued at 165K.
In order to draw down on the mortgage i have to top up my current mortgage balance by 3k to bring the LTV to 90%.
Does anyone know where the banks/underwriters get this 'index based' valuation from? What does 'index based' mean?
I know i should have queried this when i was on the phone to lender but i was so relieved to get approval in principal i didn't take to much notice of having to top up my current mortgage balance by 3k but now i am annoyed because there seems to be a huge difference. Also a house the exact same as mine on the estate has gone sale agreed at 185K in last month.