Loan package wrong - will I go ahead anyway.

Lord Nikon

Down at the brief today to ask a few questions. I asked could i see the Loan package, since i have been waiting over a month for it, and it's wrong.

It should be 40 years not 35 years. I had the wrong one sent out to the solicitor about a month ago and it was wrong too, so was waiting ages for it. Builder can't wait for me forever.

Anyway, can I go ahead with what i have, move into the house, and then follow the Loan Package up with the mortgage broker. Can it be changed once it's signed?

antoinolachtnai

This isn't a drinks order. You are going to be swearing this thing in front of a commissioner for oaths and it is probably the biggest deal you've ever done. You can't just hope you're going to be able to sort it out later. The lending desk at the bank can't go around renegotiating month-old mortgages even if it decides it is in its interest to do so. It would show up on audits and could be very hard for them to explain.

The lender can fast-track this sort of stuff if they want. I would ring, then show up at the broker's office and tell him there's a serious problem and that this deal is going to fail if it isn't sorted out.

Maybe there is some problem that prevents them from giving you the 40 year loan?

Of course, you should take advice from your solicitor on this rather than depending on what you read here.

mad m

40 year loan!!! Jesus!

Lord Nikon

antoinolachtnai wrote:

The lending desk at the bank can't go around renegotiating month-old mortgages even if it decides it is in its interest to do so.

It's actually what they agreed upon. Also, the amount is correct just the term which isn't. My solicitor only received the Loan Package last Thursday. I got onto my Mortgage Broker today anyway, and he said the bank was re-issueing the correct Loan package, with correct term on it.

antoinolachtnai wrote:

Maybe there is some problem that prevents them from giving you the 40 year loan?

No, everything is grand here.

jimmycrackcorm

Go ahead with it. Then in a years time you can switch your mortgage to another provider for whatever shorter term suits.

There's that much paperwork involved that it doesn't warrant changing it now.

40 year loan!!! Jesus!

It's all perspective.

In our parents generation they could barely get a mortgage and there are plenty of stories of people having only a slice of bread the day before payday each week.

mad m

jimmycrackcorm wrote:

It's all perspective.

I know,used to get the stories from Grandparents about how they survived on cabbage soup!!! Landlord used to shout up "Rent!!!" and my Grandad would shout back "Spent".....:D

antoinolachtnai

neuromancer wrote:

It's actually what they agreed upon. Also, the amount is correct just the term which isn't. My solicitor only received the Loan Package last Thursday. I got onto my Mortgage Broker today anyway, and he said the bank was re-issueing the correct Loan package, with correct term on it.

Good to hear it's sorting itself out. What I mean is that once the mortgage is signed and drawn down, it's not that easy for the bank to lengthen the term (shortening the term is easy enough). Changing it before it's signed is no problem.

Victor

As the bank may securitise the loan, you might actually be causing grief if you try to change it immediately after you sign up.

Lord Nikon

Victor wrote:

As the bank may securitise the loan, you might actually be causing grief if you try to change it immediately after you sign up.

Feck, didn't think of that.
Contracts signed, sealed and sent today. Don't know if the bank can do a whole lot about in now though. Once the Loan Package is issued, there's nothing they can do, is there?

Victor

Talk to them.

antoinolachtnai

There will be no problem changing the loan if it hasn't been drawn down.

The issue isn't securitization as I understand it. The problem would be that if you have to renegotiate your payments downwards within the first few months of your loan, it may be considered an indication that the bank has lent you too much money and is now trying to restructure the loan so it doesn't have to foreclose on it.

Don't worry, this is no big deal, providing they previously agreed to the longer term and you put a little pressure on them to sort everything out promptly.

patrickolee

O.P. What age are you? If you're 25 or over that could be why the bank wouldn't give you the 40 year? They probably won't change it after you draw down and if it's fixed rate you'll be penalised for chaning.

What you would probably end up doing is switching to a different financial. I'd ring them up and get them to change it asap. It will be easier to do now than later.