Sale agreed; but lender wants even more data before formal loan offer

Aglomerado

I'm not sure if I'm in the right forum, but here goes...

I'm a single FTB based in Cork - just wondering can anyone give me any reassurance on my current situation?

I agreed a sale on a house in North Cork recently, having first obtained Approval in Principle from my lender. This AIP (given to me 6 months ago) was subject to a number of conditions (salary scales, evidence of funds, details of previous employments etc), which I have fulfilled - or thought I had.

Got a call on Thursday from them - they now want P60s / evidence of my having paid tax going back a number of years. I have submitted P60s for 2001 and 2002, but not for 2003, as I only worked for eight months of that year, as I returned to college full time that September - and did not work again until the summer of 2005, after a period of unemployment.

I've been onto Revenue for a full record of employment, but I'm sure they will take their own civil service sweet time (I know, I'm employed in this area too). I'm going to drop into my local revenue office anyway to ask for the data - they can't stall me when I'm standing there can they (heh heh)


I can see where the lender is coming from, but I'm annoyed that it's taken them this long to ask for this information. Plus I've already gone and paid a (refundable) booking deposit and hired a solicitor, who will work on preparing the contracts soon.
Thought the ball was finally rolling and now it appears there may be problems at my end.

For the record, my credit history is very good...! And I am borrowing €40,000 less than the original loan offer - would that work in my favour?

Has anyone had any similar experience? Has it worked out OK? (Need reassurance!)

Sorry for my slightly all over the place post,
Thanks...

sofireland

Ok, well are you getting 100% finance?
A lot of lenders stipulate 3 yrs employment history for this.

You could see which of these Approval Conditions can be claused into the Letter of Offer.

As you've got your booking deposit down, i'm assuming you've not put the 10% down yet. Most solicitors wouldn't let you do this until your Formal offer has been received.

Aglomerado

Hi, sofireland, thanks for responding. No, it's not a 100% mortgage, that's the thing. I've been offered €215,000 but I will only need to borrow €175,000 to €185,000, as I have a good sized deposit. I haven't paid the 10% yet.

Re the 3 years employment: Broker told me I didn't need to be established in my current grade, which I wasn't at the time I made the original application. I will be established in 7-8 weeks. I've been a civil servant almost 2 years now, and had worked in the private sector for almost 3 years between 2000 and 2003, but I don't have all the P60s for this period.

I'm going to pay a visit to my friendly local revenue office tomorrow - seeing as they've ignored me for the past week, I might as well call in person, they can hardly turn me away, unless they're going on their tea

sofireland

You should get your broker to get onto the lender, they don't need that information to be honest.
I work for a broker myself, in this case i'd ring my relationship manager and getting him to have a word with the guys in the office!
Seems like over kill for what is a just over 80% LTV mortgage.
By established does that mean permanent? But given your previous employment history i think the mortgage provider is looking for too much.

Aglomerado

Established is more or less permanent. I agree it is overkill. Maybe it's the period of unemployment that isn't helping, but I've been back in the work force almost 2 years now in what is known to be a secure job, and don't plan on any more college courses.

Prior to me agreeing a sale the broker seemed very eager to find out progress on property hunting, they would call me every couple of weeks, it sounded like they were anxious to give me the money. They've been pretty decent so far, they've answered all my questions. I'll give the broker a call on Monday with a few more questions! The good folk in Revenue are helping me out anyway, so fingers crossed, we'll see how it goes.

sofireland

Best of Luck with it!