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Loan offer lapse

  • 02-11-2016 6:31pm
    #1
    tubbs26
    Registered Users Posts: 116 ✭✭


    I'm have a loan offer from AIB for a new build. The loan offer is due to lapse at the end of December.

    The house was supposed to be ready in October. The builder says it will now be ready in November but it looks a long way from finished to me.

    AIB have said once the loan offer lapses I will have to reapply. They've also said they cannot extend the loan offer.

    Does anyone have any experience of this and know if it is possible to extend loan offers?


Comments

  • #2
    Nervous Wreck
    Closed Accounts Posts: 16,115 ✭✭✭✭Nervous Wreck


    tubbs26 wrote: »
    Does anyone have any experience of this and know if it is possible to extend loan offers?

    Im no detective, tubbs... but the answer to this may lay here...
    tubbs26 wrote: »
    AIB have said once the loan offer lapses I will have to reapply. They've also said they cannot extend the loan offer.


  • #3
    tubbs26
    Registered Users Posts: 116 ✭✭tubbs26


    Nervous Wreck wrote: »
    Im no detective, tubbs... but the answer to this may lay here...

    I'm looking to see if anyone has had a similar experience. I was surprised they would not allow an extension.

    Ps thanks for the sarcasm, Moderator!


  • #4
    Nervous Wreck
    Closed Accounts Posts: 16,115 ✭✭✭✭Nervous Wreck


    tubbs26 wrote: »
    I'm looking to see if anyone has had a similar experience. I was surprised they would not allow an extension.

    Ps thanks for the sarcasm, Moderator!

    Youuuuuuuuu're welcome!!! :)


  • #5
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    Hi Tubbs
    I think to get the offer extended you will only have to supply the lender with 3 months up to date payslips, current and savings statements and credit card statements. You need to contact the lender before the offer expires to check what you need to provide them.

    Can you not draw down a stage payment before expiry date in December to avoid all this hassle and paperwork??


  • #6
    kellyyang2011
    Registered Users Posts: 3 ✭kellyyang2011


    Hi Tubbs

    Just wondering how did you get your loan approval letter from AIB, as I am in the very similar situation this moment, I put down my deposit for the new build, but it seems will be only ready around another 6 months, so made contact with AIB, my adviser said my first letter for initial sanction in principles is sufficient to sign contract, if I need to extend my mortgage as it may be expired before the house completed, just need to update my payslip etc, as I am banking with them.
    However my agency said the bank can value the house based on the current constructions and the show house conditions to go through the loan letter. I am confused now, as I do not really want to sign any binding contract with the initial letters only.

    How did you manage to get the official loan approval letter?

    Thanks in advance.

    Kelly


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  • #7
    tubbs26
    Registered Users Posts: 116 ✭✭tubbs26


    I ended up having to drawdown my mortgage. The builder was able to give my solicitor a cert of completion. The house wasn't ready until well into January. The loan offer lapsed in December.

    I was further along the line than you are. I had a loan offer issued. The loan offer lasts for 6 months. Our solicitor advised us only to sign when you have a loan offer.

    My bank had said that if we reapplied that the our previous approval would have been taken into account. If your circumstances haven't changed you should be fine

    The problem for us was we had a baby in the meantime so we probably wouldn't have got as much

    kellyyang2011 wrote: »
    Hi Tubbs

    Just wondering how did you get your loan approval letter from AIB, as I am in the very similar situation this moment, I put down my deposit for the new build, but it seems will be only ready around another 6 months, so made contact with AIB, my adviser said my first letter for initial sanction in principles is sufficient to sign contract, if I need to extend my mortgage as it may be expired before the house completed, just need to update my payslip etc, as I am banking with them.
    However my agency said the bank can value the house based on the current constructions and the show house conditions to go through the loan letter. I am confused now, as I do not really want to sign any binding contract with the initial letters only.

    How did you manage to get the official loan approval letter?

    Thanks in advance.

    Kelly


  • #8
    kellyyang2011
    Registered Users Posts: 3 ✭kellyyang2011


    Thanks very much for this information Tubbs! I am glad you get it sorted!
    I had spoke to the valuation department, they confirmed they can provide the first visit to get the valuation report done to get the loan offer, once the house completed they will be able to visit again to make sure all requirements has been achieved. Hopefully my process will be smoothly.

    Best regards

    Kelly


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