Free car when you buy a house!!!

[Mark Hennessy]

Originally Posted by Oisin88

In Tullamore, which is only 1 hour commute from Heuston, you can get a 3 bed for 275,000 + either 2 years free mortgage or 1 year free mortgage + extensive kit out.

It is blatantly about the estate agents, etc. keeping the prices high.

I'm no expert but for the purpose of house valuation for a mortgage, don't all the freebies have to be discounted anyway?
Is is not technically mortgage fraud if you get a loan to the full cost price of a house when the "cost" isn't accurate?

[Thomas Ralph]

I work for Halifax and can confirm that we would count the value of all that stuff against the value of the house when determining Loan to Value ratios.

I doubt it'd be considered mortgage fraud though.

[Mark Hennessy]

Originally Posted by tralph

I work for Halifax and can confirm that we would count the value of all that stuff against the value of the house when determining Loan to Value ratios.

Ok, can someone explain to me

So for a FTB: Hypothetical house for 300k.
Been on the market for a year, developer getting shifty so throws in freebies (kitchen + small car worth 15k) to make bank value the house at say 275k.

Now that the 100% is gone the way of the dodo, banks want 92% LTV so an FTB can only get 253k on this place leaving them to come up with a whopping 47k to pay the developer 300k.

Am I missing something here?
I'm not qualified in building at all but is the developer not making a whopper of a mistake by not lowering the price?

[Thomas Ralph]

We still offer 100% mortgages. [/spam]

But yes, in the situation you describe, the buyer (or, as we're increasingly seeing, the parents) need to come up with quite a bit of funds to get the sale through.

[Colm Donoghue]

Originally Posted by Mark Hennessy

Ok, can someone explain to me

So for a FTB: Hypothetical house for 300k.
Been on the market for a year, developer getting shifty so throws in freebies (kitchen + small car worth 15k) to make bank value the house at say 275k.

Now that the 100% is gone the way of the dodo, banks want 92% LTV so an FTB can only get 253k on this place leaving them to come up with a whopping 47k to pay the developer 300k.

Am I missing something here?
I'm not qualified in building at all but is the developer not making a whopper of a mistake by not lowering the price?

obviously not the car, but good quality fittings( or are they fixtures) would add to the value of a house. like a kitchen or tiling or floors.

[Thomas Ralph]

Yes, sorry should have been clearer. Fixtures and fittings would be included, movables would not.