Losing a mortage exception

syndrome777

dev_ire wrote: »

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.

and that would be the case if you didn't have the specified address.
The whole underwriting was done for that specific house, specific value and all and therefor it can't just be changed to any house now, they have to reassess and given there are n more exceptions you would only be offered 3,5 x salary.

I am not defending them, I had AIP last year with exception for 6 months and was not told on time that if that expires on my extension of my AIP I might lose my exception....which I did

dev_ire

syndrome777 wrote: »

and that would be the case if you didn't have the specified address.
The whole underwriting was done for that specific house, specific value and all and therefor it can't just be changed to any house now, they have to reassess and given there are n more exceptions you would only be offered 3,5 x salary.

I am not defending them, I had AIP last year with exception for 6 months and was not told on time that if that expires on my extension of my AIP I might lose my exception....which I did

I understand if the time lapses then I lose my exception.
But I am within the 6 months still.

They told me when I went for full approval that the address could be any address. They also did not say it could not be changed.
They also did not say wait until 2-4 weeks before your AIP is about to run out then go for full approval which at least would have meant I would have waited until I was verbally sale agreed on a house before naming that house as my only house to get a mortgage for.

Q&A

dev_ire wrote: »

I understand if the time lapses then I lose my exception.
But I am within the 6 months still.

They told me when I went for full approval that the address could be any address. They also did not say it could not be changed.
They also did not say wait until 2-4 weeks before your AIP is about to run out then go for full approval which at least would have meant I would have waited until I was verbally sale agreed on a house before naming that house as my only house to get a mortgage for.

Unfortunate but the bank has probably taken the view that your exemption is unique to that borrower-property combination. From the banks side no two houses are the same and they would need to formally asses the new property. Such demand for exemptions they just give it to the purchase next in line. Probably quicker for them. If this had happened earlier in the year you might have gotten away with it but exemptions are probably a scarce resource at this time of year.

Unfortunately the mortgage person you've been dealing with is just a sales man the underwriter is the one that makes the decision.

dev_ire

Q&A wrote: »

Unfortunate but the bank has probably taken the view that your exemption is unique to that borrower-property combination. From the banks side no two houses are the same and they would need to formally asses the new property. Such demand for exemptions they just give it to the purchase next in line. Probably quicker for them. If this had happened earlier in the year you might have gotten away with it but exemptions are probably a scarce resource at this time of year.

Unfortunately the mortgage person you've been dealing with is just a sales man the underwriter is the one that makes the decision.

But they gave me approval in principle of the same mortgage amount so I don't think it is about the property. Also they don't know the new property yet so it could not be about the differences.

jwabh

The way they remove it is as you move to property specific on a new property they have to issue you a new offer letter. At this point they pull it.

Aaron15

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?

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

We’re getting our mortgage with BOI and we’re approved for 12 months also, I’ve confirmed this with my mortgage advisor several times, once you’ve identified a property before applying they give you the loan offer for 12 months on a new build.

dev_ire

Aaron15 wrote: »

We’re getting our mortgage with BOI and we’re approved for 12 months also, I’ve confirmed this with my mortgage advisor several times, once you’ve identified a property before applying they give you the loan offer for 12 months on a new build.

Don't change your mind on your house though. I confirmed twice in writing (email) too.

Aaron15

dev_ire wrote: »

Aaron15 wrote: »

We’re getting our mortgage with BOI and we’re approved for 12 months also, I’ve confirmed this with my mortgage advisor several times, once you’ve identified a property before applying they give you the loan offer for 12 months on a new build.

Don't change your mind on your house though. I confirmed twice in writing (email) too.

we’re nearly at the end process and we’re happy with the house, I’m sorry to hear, I hope everything works out for you

dev_ire

Good luck with the new house. Thanks.

scwazrh

.

Captain Flaps

My experience with BOI matches OP.

Applied for mortgage with exception from them, KBC and AIB/Haven. KBC and AIB offered approval for 6 months, extended to 12 if the closing process dragged on - so basically 6 months not specific to a certain property, then an additional 6 months tied to one.

BOI required us to have a property in mind to process the quote, and were really unhelpful when I pointed out that waiting until we had a house in mind to start applying for approval would mean multiple applications as we were outbid etc.

dev_ire

BOI have honoured my approval but will now only change it once. So if anyone sees this be careful going to loan offer before you are sure of the house you want or go with AIB or some place that will allow you more freedom.

jaffa20

I'm very confused. Are BOI only giving loan offers on specific properties? That doesn't make sense. I am waiting now on news from them after submitting all documents but i have not found no property yet. I am a 2nd time buyer and need to sell my house first.

I might just apply to broker at the same time in case there is issues or maybe EBS who just launched 2% cashback might be an option. Can you still get cashback via a broker?

astrofool

jaffa20 wrote: »

I'm very confused. Are BOI only giving loan offers on specific properties? That doesn't make sense. I am waiting now on news from them after submitting all documents but i have not found no property yet. I am a 2nd time buyer and need to sell my house first.

I might just apply to broker at the same time in case there is issues or maybe EBS who just launched 2% cashback might be an option. Can you still get cashback via a broker?

I think it's only when granting an exception, they need to see that the type of property being bought is one that would meet the criteria for an exception, so providing the property that ends up being bought is of similar "spec" then the offer will be valid.

The banks are also limited in the number of exceptions they can loan, so if everyone who as an exception approval draws down before you, then they may not be allowed to honour the exception that they allowed in principle (and not much they can do about it), all banks will be limited by this, so you're just gambling on which banks are getting all the exception draw downs or not.

dev_ire

astrofool wrote: »

I think it's only when granting an exception, they need to see that the type of property being bought is one that would meet the criteria for an exception, so providing the property that ends up being bought is of similar "spec" then the offer will be valid.

The banks are also limited in the number of exceptions they can loan, so if everyone who as an exception approval draws down before you, then they may not be allowed to honour the exception that they allowed in principle (and not much they can do about it), all banks will be limited by this, so you're just gambling on which banks are getting all the exception draw downs or not.

Yes I had an exception. An exception should be an exception if they over provide them then that's just messing with people.

jaffa20

astrofool wrote: »

I think it's only when granting an exception, they need to see that the type of property being bought is one that would meet the criteria for an exception, so providing the property that ends up being bought is of similar "spec" then the offer will be valid.

The banks are also limited in the number of exceptions they can loan, so if everyone who as an exception approval draws down before you, then they may not be allowed to honour the exception that they allowed in principle (and not much they can do about it), all banks will be limited by this, so you're just gambling on which banks are getting all the exception draw downs or not.

Ah ok, that makes sense. i don't think i will need exception thankfully. My savings could be an issue though with stress testing

astrofool

dev_ire wrote: »

Yes I had an exception. An exception should be an exception if they over provide them then that's just messing with people.

That's the central bank rules, so you know where to complain (and if you read the approval documentation, it will say similar).

Other option is to relax the credit rules, but then you'd be here complaining about rapidly rising prices.

dev_ire

astrofool wrote: »

That's the central bank rules, so you know where to complain (and if you read the approval documentation, it will say similar).

Other option is to relax the credit rules, but then you'd be here complaining about rapidly rising prices.

I am aware of the rules. Bank of Ireland overstretched their limits and not me hence why they are honouring my exception.

The Sparrow

Captain Flaps wrote: »

My experience with BOI matches OP.

Applied for mortgage with exception from them, KBC and AIB/Haven. KBC and AIB offered approval for 6 months, extended to 12 if the closing process dragged on - so basically 6 months not specific to a certain property, then an additional 6 months tied to one.

BOI required us to have a property in mind to process the quote, and were really unhelpful when I pointed out that waiting until we had a house in mind to start applying for approval would mean multiple applications as we were outbid etc.

This is also similar to my experience with Bank of Ireland. I wanted to get AIP before looking at properties so that I would know how much I had to buy somewhere with. BOI refused to deal with me on that basis and would only process the application if I had a specific property in mind. When I asked what would happen if I didn't buy that property, they told me that my AIP and exceptions would be invalid and I would have to start the application process again.

Needless to say I took a walk at that point and went to AIB and EBS who were happy to process my application on its own merits without the need for a property to be specified. I know have AIP for 12 months from both.

Other than saying that is just how they operate, nobody in BOI could give me a good reason why they seem to operate differently to other banks in this regard. Not worth the hassle in my estimation, there are plenty of banks that are easier to deal with.

dev_ire

The Sparrow wrote: »

This is also similar to my experience with Bank of Ireland. I wanted to get AIP before looking at properties so that I would know how much I had to buy somewhere with. BOI refused to deal with me on that basis and would only process the application if I had a specific property in mind. When I asked what would happen if I didn't buy that property, they told me that my AIP and exceptions would be invalid and I would have to start the application process again.

Needless to say I took a walk at that point and went to AIB and EBS who were happy to process my application on its own merits without the need for a property to be specified. I know have AIP for 12 months from both.

Other than saying that is just how they operate, nobody in BOI could give me a good reason why they seem to operate differently to other banks in this regard. Not worth the hassle in my estimation, there are plenty of banks that are easier to deal with.

In my situation they told me the property was just a placeholder and I could change it, it was only when I went to get a new loan offer they rang and asked for new documentation and told me it would be a new process and all the exceptions were gone.

I agree other banks are easier and more logical but BOI have the best fixed rate and also cashback offer.

Frisbee

Just gone through the process with BOI.

We were AIP with an exception. However they were very very clear with us that until we had a specific property this was only In Principle. There was a chance once we had a specific address everything would be fine but our advisor stressed with us several times there would be a good chance we would need to be re-assessed.

When we finally got the house we wanted we had to go through the whole process again and lost our LTV exemption due to CB overextending. Took about three weeks of sending loads of docs over to them and hounding them but in the end we were re-approved for the exemption.

It was a pain int he arse but our mortgage advisor went out of her way with us throughout the process that there would be a strong chance once we had a specific address it could be a total fresh application & trip to the underwriters.