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Drawing down the mortgage for renovating

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  • 24-03-2012 10:09pm
    #1
    paddy00
    Registered Users Posts: 21 ✭


    My bank recently refused to sanction a drawdown on my mortgage for renovation despite my manager verbally assuring me several times over the last year or two. I'm back at the drawing board for some drastic changes to plans etc. I'm interested to know if many people find themselves in this situation of late. Thanks


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    #2
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    paddy00 wrote: »
    My bank recently refused to sanction a drawdown on my mortgage for renovation despite my manager verbally assuring me several times over the last year or two. I'm back at the drawing board for some drastic changes to plans etc. I'm interested to know if many people find themselves in this situation of late. Thanks

    Why did they refuse you? Is the project not going to agreed budget? Change in your circumstances? Loan offer expired? There are lots of different reasons that they might refuse to let you drawdown a stage of the loan and what you can do about it will really depend on the reasons they refused...


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    #3
    paddy00
    Registered Users Posts: 21 ✭paddy00


    Hi Killers Thanks for the response. Reason given is that tightened stress tests have changed since last time I spoke to bank. Pretty lame excuse seeing that I have more than adequate capacity to repay mortgage. My circumstances thank God are very good. I have my business banking with this bank too. That however will be changing soon! My post really was out of curiosity as to whether this is a common occurrence. I felt pretty pissed off when this bank told me the news. I would think that it would be a kick in guts for many people?? It's amazing the arrogance of the bank. They actually said that they hoped this would not affect their business relationship with me!!!


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    #4
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    Sounds like you had a previous approval in principle and then when you went looking for the loan offer their credit policy had tightened up? Nice of them to keep taking their fees on your business banking side but telling you they can't help you out with the mortgage...


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    #5
    223vmax
    Registered Users Posts: 475 ✭✭223vmax


    I am in same boat as you. I got a yes in principle and then when I went looking for the offer I got a 'No'. Strange thing was that they couldn't really give me a straight answer as to why, that was a month ago and I haven't got it in writting. That was with PTSB. Which one are you dealing with?


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    #6
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    223vmax wrote: »
    I am in same boat as you. I got a yes in principle and then when I went looking for the offer I got a 'No'. Strange thing was that they couldn't really give me a straight answer as to why, that was a month ago and I haven't got it in writting. That was with PTSB. Which one are you dealing with?

    Until you actually have a loan offer in your hand you can't take it as a given that the bank will stand over their Approval in Principle, especially in a case where the loan is a self build or property renovation...You should be able to push ptsb to at least explain the reasons why you were given an AIP but then declined when you looked for the formal approval...


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