Revaluation of properties with loans?

[sofia]

Hello
Last week, I've been contacted by phone by my bank SG, where I have a loan for my house since sept 2005, informing me that there is a general directives for all banks from bank of Cyprus, to revaluate the properties and the fees are on client's charge; and this will happen every 3 years from now on....
Of course I went to the bank and asked more information about all this:
1, they are just informing me, and I have no choice to accept or refuse!
2, they will not give any official letter for this information!
3, they were not able to tell me exactly how much it will cost me this time; they kept saying " it will be more or less 1% of the estimated value !!! waow... I was so lucky to pay only 80 pounds on 2005 for the 1st valuation!
I asked some people who have loans for their house or apartment, with other banks, nobody heard about this...
and I have been told that this is illegal and it is special to my bank & I have the right to refuse.
So, if you can tell me anything about this please do.
Thank you

[Nigel Howarth]

Hello sofia and welcome to the forum,

I have not heard from anyone else who had received similar letter from their bank. When you say the bank is SG, do you mean the Societe Generale Bank?

The only reason I can think of why the bank wants to revalue your house is that it is revaluing its loan book. Banks need to have sufficient funds to cover their exposure to risks, such as loans - and they would need to do this regularly (as you suggest). They would need to do this irrespective of any directives from the Central Bank.

I suggest that you contact the Central Bank to see if you can get to the bottom of this.

Regards,

[sofia]

Hello Nigel
I just got the information : this is a central bank directive but only for the revaluation, nothing about fees, because they cannot interfere between the bank and the client!!! and this directive has been for a while, but certainly after my loan contract was done. it seems that not all banks are applying the fees on their clients account. so i must negociate with mine...
I'm still waiting for them to give me the information about the % of the amount for the revaluation that they will charge me.

Best regards

[Nigel Howarth]

Hello sofia

Have you thought about switching your mortgage to another bank? It may be worth speaking with some of the other banks to see if they can offer you a lower rate/costs.

Is it the Societe Generale Bank you are with at the moment?

Regards,

[sofia]

Yes Nigel it is societe general, I must say first that I have good relation with my bank but this is not the 1st time having fees problems, for ex. for 4 years of loan i haven't got any loan statement ! and when i asked them it costed me 35 euros for one year/one page of statment!!! it's not normal at all, at least once a year they should send a statment what was done so that i know exactly what i have payed (interest,capital..)and where I stand!
and yes i've already done a tour to other banks at the beginning of 2010, and i found 1 bank which seems to me better rates and services (coop)but i was not client; i opened an account and we'll see. having in mind that it costs 5% transfer fees.

[Nigel Howarth]

I was reading an article not so long ago that reported that mortgage transfer fees had been reduced. Unfortunately I cannot find it - so it maybe worthwhile checking out one of the banks again.

Regards,

[Pantheman]

Co-op do not lend easy on home loans, waste of spacers.

i would not use them for home loans, they are essentially a farmers bank.

[sofia]

Hello Pantheman
Why you wouldn't use coop as home loan? what's the difference if they lending for houses?

[Pantheman]

Hello Pantheman
Why you wouldn't use coop as home loan? what's the difference if they lending for houses?

Just try it and see, there criteria is so strict its almost impossible to get any money out of them.

If you have a property from a developer, they will need the planning permit, build permit and probably a bank waiver or bank guarantee and even then they may refuse.

In my experience I have been unsuccessful to get a loan for any client via co-op.

please prove me wrong, I am happy to eat humble pie, but just tell me what their criteria was.

Good luck Sofia. Eisai Kypea?