Losing a mortage exception

dev_ire

Hello,

is it possible to lose your mortgage exception? Say you are approved for 12 months. Can you be re-assessed before you draw down without your circumstances changing?

jwabh

dev_ire wrote: »

Hello,

is it possible to lose your mortgage exception? Say you are approved for 12 months. Can you be re-assessed before you draw down without your circumstances changing?

Yeah it's possible. It happened to me. I only had it 5 months and I told them I decided on a house and they told me my excemption was gone

dev_ire

What did you do?

jwabh

dev_ire wrote: »

What did you do?

Went to another bank. Ebs had exemptions and I'm currently using them.

Looking back I'd never just get it from one bank

dev_ire

BOI are the only bank to do cash back though. I do have another loan offer but BOI is the best deal.

rachieqtpie

dev_ire wrote: »

Hello,

is it possible to lose your mortgage exception? Say you are approved for 12 months. Can you be re-assessed before you draw down without your circumstances changing?

Yes it happened to us in may. Boi ran out of exceptions and we had to apply elsewhere!

Q&A

dev_ire wrote: »

BOI are the only bank to do cash back though.

EBS and PTSB both offer 2% cashback while Ulster offer €1.5k.

dev_ire

I can not find anything online that says this can happen. I can see it has happened but are they just chancing their arm or are just useless?

GingerLily

dev_ire wrote: »

I can not find anything online that says this can happen. I can see it has happened but are they just chancing their arm or are just useless?

What do you mean?

dev_ire

I mean nowhere online does it say your mortgage approval is for one house and if you change to want to buy another house you have to do a new application and with a new application the exception could be gone.

This is all inside one year.

The mortgage amount is not changing, the term is not changing. The property price is basically the same with more than enough proof of funds.

Thomas

dev_ire wrote: »

I mean nowhere online does it say your mortgage approval is for one house and if you change to want to buy another house you have to do a new application and with a new application the exception could be gone.

This is all inside one year.

The mortgage amount is not changing, the term is not changing. The property price is basically the same with more than enough proof of funds.

Banks can’t reserve exceptions as window shoppers may have exceptions approved in principle from a number of banks yet will obviously only draw from one if at all.

Obviously stressful if your budget is based on an exception. I think the Central Bank needs to allow banks cater for cases like this if you are eventually successful in finding a house.

dev_ire

Then they should not tell you you have 12 months approval.

They should say 12 months on this and only this house or x monnths on any similar property.

Thomas

dev_ire wrote: »

Then they should not tell you you have 12 months approval.

They should say 12 months on this and only this house or x monnths on any similar property.

Wouldn’t disagree with that.

GingerLily

dev_ire wrote: »

Then they should not tell you you have 12 months approval.

They should say 12 months on this and only this house or x monnths on any similar property.

What bank are you with? What does the actual approval state? Usually it means you don't have to reapply, but I'd never assume that anything is ever done until its actually done.

dev_ire

Bank of Ireland. It states it lasts until January of next year.

But they are telling me the loan offer has one house specified so if that changes the whole things goes and I start the process from scratch.

lau1247

Yep it happens.. looks like you are with the same bank?

Saw this in the talk to section, https://www.boards.ie/ttfthread/2057878456

GingerLily

dev_ire wrote: »

Bank of Ireland. It states it lasts until January of next year.

But they are telling me the loan offer has one house specified so if that changes the whole things goes and I start the process from scratch.

The application process or approval process?

dev_ire

They said it would be a new process and they are out of exceptions. So it is essentially a new application.

GingerLily

dev_ire wrote: »

They said it would be a new process and they are out of exceptions. So it is essentially a new application.

They said you would have to resubmit everything?

dev_ire

GingerLily wrote: »

They said you would have to resubmit everything?

They said all the exceptions were gone, re-submitting everything minor so not sure what they said about that as I was focusing on the fact that I can now not can any property I have viewed for the last 6 months.

I would expect to have to to prove I still have the same salary, same repayment capacity etc.

catrionanic

Can I ask what bank this was with?

dev_ire

Bank of Ireland.

AIB said I would need to put back in payslips but would not lose my exception.

awec

This thread is really hard to understand.

Are you asking what happens if you get a formal loan offer on a specific property (i.e. you've actually bought a house), but then for whatever reason you back out of that and want to buy a different house instead?

dev_ire

I was issued a loan offer on a specific house.

But I was told that if I change the property once my circumstances had not changed and I was not looking for a higher loan amount the exception would not go away.

I have it in writing from Bank of Ireland that it would not be a new application and my exception would not go if I changed address.

Even bank of irelands website says it here https://personalbanking.bankofireland.com/borrow/mortgages/articles/how-the-mortgage-process-works/

"Step 7 The Offer"
and then
"Step 8 Find your dream home"

You can't have a loan offer on a specific house and then go looking for your "dream home" after.

awec

dev_ire wrote: »

I was issued a loan offer on a specific house.

But I was told that if I change the property once my circumstances had not changed and I was not looking for a higher loan amount the exception would not go away.

I have it in writing from Bank of Ireland that it would not be a new application and my exception would not go if I changed address.

Even bank of irelands website says it here https://personalbanking.bankofireland.com/borrow/mortgages/articles/how-the-mortgage-process-works/

"Step 7 The Offer"
and then
"Step 8 Find your dream home"

Ok, so what's the problem?

dev_ire

awec wrote: »

Ok, so what's the problem?

I was told I have a mortgage of 4.5 my salary, now I am told I will only be able to draw down 3.5 my salary.

awec

Ok, so you got an official loan offer on a specific house, and you now want to draw it down but the bank are saying they will no longer give you the mortgage amount they offered?

You say this official offer was valid for 12 months? But BOI usually only give 6 months, after which you will need to be re-assessed before drawing down. Are you sure it was 12 months?

Approval in principal is usually 12 months, but once you progress to formal offer stage it's usually brought down to 6.

dev_ire

awec wrote: »

Ok, so you got an official loan offer on a specific house, and you now want to draw it down but the bank are saying they will no longer give you the mortgage amount they offered?

You say this official offer was valid for 12 months? But BOI usually only give 6 months, after which you will need to be re-assessed before drawing down. Are you sure it was 12 months?

I was assured that changing the address of the house on my loan offer would not change the mortgage amount.

I was issued the loan offer in mid February so if it was 6 months it would still be until mid August. They told me they are out of exceptions now and would lose it now as I need a new application with a new house address.

Actually I did not receive my loan offer until Mid March so would be mid september.

syndrome777

dev_ire wrote: »

I was assured that changing the address of the house on my loan offer would not change the mortgage amount.

I was issued the loan offer in mid February so if it was 6 months it would still be until mid August. They told me they are out of exceptions now and would lose it now as I need a new application with a new house address.

this happend to a friend of mine in BOI. Had exception approved for a specific house (new build, which they didn't like n the end) , when they said they had a different house in mind they had to go through the process again and lost the exception.

That's why it's always better to go with AIP without a specific address in application.

dev_ire

syndrome777 wrote: »

this happend to a friend of mine in BOI. Had exception approved for a specific house (new build, which they didn't like n the end) , when they said they had a different house in mind they had to go through the process again and lost the exception.

That's why it's always better to go with AIP without a specific address in application.

My AIP lasts 6 months so they should not take away my exception either way as I am within 6 months of AIP and loan offer also.

testicles

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