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EBS/BOI/AIB for ftb mortgage

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  • 29-04-2010 3:06pm
    #1
    Jinxi
    Closed Accounts Posts: 429 ✭✭


    y partner and I have gootten the preliminary ok from EBS AIB and BOI. Wll their rates are similar. The only differences are things like EBS doesn't give any breaks in mortgage payments if you need it(but they open on saturdays), AIB offering 10% off life assurance...little things like that.
    Does anyone have any ideas which we should go with?


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    #2
    shanemort
    Registered Users Posts: 234 ✭✭shanemort


    We bought last year in July 2009 and had terrible trouble with AIB, They reviewed our finances and said they would give us 400k no problems, we said we've found a house and were looking to put a deposit down, AIB Said oh yes go ahead and we will get the application formally put in. 3 Weeks later after calling them Everyday!!!! They offered us 200k after we had paid a deposit to the owners.... My Familiy and my Good Ladys family have allways banked with AIB all thier businesses and personal accounts over the years, And they didnt give a sh1t, Both our Fathers went down to the managers and everything. Still didnt care...

    The next day we walked into BOI Rathmines and we had the amount we needed 1 week later....... We put our Life assurance and Home insurance through BOI also as they were offering the cheapest. I've since had all the usual brokers trying to beat our policys pricing and they all come back and say sorry but you've a great deal there and i dont think anyone will beat it.

    Just my 2 cents...

    Make sure you have a letter of offer from the bank to your value you need 100% sorted before handing over any cash.

    Good luck


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    #3
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    shanemort wrote: »
    Make sure you have a letter of offer from the bank to your value you need 100% sorted before handing over any cash.

    Are you referring to a Mortgage in Principle Letter, or a Letter of Offer?

    One should always have a "Mortgage in Principle" letter before they go house hunting. However, one does not usually get a letter of offer until the house has been chosen.

    Basically a "Mortgage in Principle" (MIP) Letter is just to say that the bank would be favorable, in principle, to offering a certain amount for a property valued at a specific amount. There is no legal commitment, it's just an informal invitation. One should get this before even starting houses-hunting.

    The Letter of Offer is when, after finding the right property and having a bid accepted, one approaches the lender for a mortgage for this specific property and the lender accepts. It is legally binding for a specific period of time (typically for 6 months).

    Although it would be ideal to have the Letter of Offer before one hands over any deposit, it can sometimes take days/weeks before getting it approved. In the meantime, the seller has not received any deposit and could go on to sell to someone else.

    In your particular case, it sounds like the AIB manager was all in favour of the mortgage for that amount but, ultimately, the Mortgage Processing unit (who underwrite the mortgage and have the final say) weren't. The same happened to me when I was buying a couple of years ago. Fortunately, managed to get everything sorted in the end, but they really need to improve on their communications between the branch (who were offering the money no problem) and head office (who were far more pessimistic/stringent).


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