Mortgage Drawing Down Question

Lemlin

Hi folks,

Just a quick question. I drew down 20k last month of my mortgage to start building. Will be due to draw down more soon. However, my partner and I both work for Quinn Insurance and our jobs would be seen as 'unstable' at the minute.

Could the bank stop us drawing down more? I would of thought that as we are approved they can't stop us until we miss a repayment. The bank is AIB.

Lemlin

Bump.... can anyone advise?

ball ox

It shouldn't be a problem. Once you've signed your letter of offer you're grand. It will only effect you if you try to restructure your loan (extend the term, apply interest only repayments, moratorium etc.), in that case the banks lenders would need to re-access your financial circumstances.
In your situation, where you are just requesting another tranche draw down, it doesn't go anywhere near the lenders as they have already sanctioned you for the full amount.

Lemlin

ball ox wrote: »

It shouldn't be a problem. Once you've signed your letter of offer you're grand. It will only effect you if you try to restructure your loan (extend the term, apply interest only repayments, moratorium etc.), in that case the banks lenders would need to re-access your financial circumstances.
In your situation, where you are just requesting another tranche draw down, it doesn't go anywhere near the lenders as they have already sanctioned you for the full amount.

Thanks alot for your help. We thought that ourselves but just wanted to check.

tHE vAGGABOND

Could the bank stop us drawing down more?

I know someone who had a large mortgage to build a house last year, and the bank put a pause on several payments/draws on the money for various reasons.. [all good in the end]

I think its a case where you ring your bank now, rather than spend 100 grand and then they kill your money and your left with a mortgage and no gaff.

Bankguy

I would also er on the side of caution here and contact the bank official who dealt with you. Under the terms of your loan agreement you may be surprised with what could be considered 'an event of default' (all encompassing generally). I know its awful but you need to be prepared for the worst however the likley outcome is that they will continue to support you - I assume you don't have income protection insurance?

unclebill98

Your Mortgage Loan offer is a legal document. So once signed they can not stop it. Unless its stated as a T&C in it.

Lemlin

Bankguy wrote: »

I would also er on the side of caution here and contact the bank official who dealt with you. Under the terms of your loan agreement you may be surprised with what could be considered 'an event of default' (all encompassing generally). I know its awful but you need to be prepared for the worst however the likley outcome is that they will continue to support you - I assume you don't have income protection insurance?

Nope, don't have income protection insurance and I presume it'd be useless to take it out now when jobs are in threat?

Lemlin

tHE vAGGABOND wrote: »

I know someone who had a large mortgage to build a house last year, and the bank put a pause on several payments/draws on the money for various reasons.. [all good in the end]

I think its a case where you ring your bank now, rather than spend 100 grand and then they kill your money and your left with a mortgage and no gaff.

What reasons were the pauses though?
Unless they relate to his job it might be something else e.g. architect wouldn't sign off on a part of the build.

tHE vAGGABOND

What reasons were the pauses though?

None of your business

My point was, ring the bank and ask them outright, not later and don't trust the word of people from the internet who may or may not be right - not when your talking about massive sums of money

jimoc

Lemlin wrote: »

Hi folks,

Just a quick question. I drew down 20k last month of my mortgage to start building. Will be due to draw down more soon. However, my partner and I both work for Quinn Insurance and our jobs would be seen as 'unstable' at the minute.

Could the bank stop us drawing down more? I would of thought that as we are approved they can't stop us until we miss a repayment. The bank is AIB.

I don't think this should have any impact but as the other posters said, you should make the bank aware of the situation.
My understanding of the Quinn situation, and someone more business savvy can correct me if this is wrong, is that the administrators have been appointed, not to wind up the business, but to ensure that it is run in accordance with the regulations.
They have seen that the company has not been making much money off the UK market and so have stopped them from taking business there so as not to increase the risk that they are exposed to.
They are also there to prevent Mr Quinn from using any more of the company as a surety on loans in the rest of the group.
If as Quinn has said, they are making millions a month, the defecit should be quickly reversed, in which case the regulators back off and let the company get back to business.
If its not reversed, then Quinn will be forced to sell off other parts of his empire and use that to make up the shortfall.
However, either way, unless the level of claims increases by a huge amount in the next few months, then this should be resolved without any impact on peoples livelihoods.

In any case, I don't think that the banks can use this to withhold your stage payments, as there has been no substantial changes in your employment conditions and the company has not been put on protective notice.

Bankguy

Yeah - complete waste of money for now until the current adminstration situation passes.