[Anonymous]

I have a question regarding the figure which banks use to calculate property values when offering a mortgage.

I have purchased a property off plan and so far I have been fortunate enough to see a moderate increase in property value.

I don’t want to take the developers mortgage (conditions are pretty poor) and I don’t want to pay a mortgage brooker (unless I have to).

My question is when the bank grants a mortgage to somebody in my situation to they value the property at:

a. The price I purchased the property at 3 years ago.

or

b. Current valuation.

Any help as always would be greatly appreciated.

[Anonymous]

Bank valuations are considered out of date after 6 months, the bank will almost certainly carry out a new valuation which you will also have to pay for, it may be worth considering taking over the existing mortgage as you will save the opening commisions (often 1%)

Jim

[Anonymous]

Hi DGR,

I agree with Jim. The bank will make a new valuation at todays prices and you will have to pay for this. It will depend who the bank uses for the valuation but in my area they cost around 200 to 300 euros. Jim is right that there would be an opening cost of around 1% to 1.5% to open a new mortgage so his advise to take over the existing mortgage is very valid.

Best wishes

Bernard

[Author]

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