Urgent question re mortgage cheque

tw0nk

Hi All,

If anyone could please answer this definitively for me please as I am against the clock on this one...

I was approved for a mortgage and got it at a fixed rate of 4.99% and three days later the rate went up to 5.35% and so the bank (permanent tsb) sent out a letter saying the rate had changed but I will still get previous lower rate if I "draw down the mortgage before july 25th".

So the bank rang me Monday and said they had issued the cheque, my solicitor rang me today and said he had received it.

My problem is, am I now ok and still on lower rate? ie have I "drawn down the mortgage"? Or does my solictor actually have to transfer the money into his a/c from the banks before the mortgage is drawn down?

If anyone can please answer this for me as I just rang ptsb and the young guy on the phone wasnt sure and there as no manager there to verify. It means a lot to me over 3 years of fixed rate to get the lower rate.

Thanks in advance.

antoinolachtnai

I'd say you will probably get the lower rate, but you can't expect us to know; it depends on the bank's policy.

tw0nk

antoinolachtnai wrote:

I'd say you will probably get the lower rate, but you can't expect us to know; it depends on the bank's policy.

Well I know what their policy is regarding rate, but I dont know what the "drawdown date" is, is it date cheque is issued to solicitor or is it date solicitor withdraws funds?

The_Conductor

Once the cheque has cleared the bank and been deposited in your/your solicitors account, the mortgage is considered drawn down. Issuance of the cheque is a step in that process, but until the money leaves the bank, it would normally be considered to still be with them. Of course you should contact someone in the bank who is in a position to confirm this 100% definitely. You still have a week- so while time is short, you do have time to chase this up.

tw0nk

smccarrick wrote:

Once the cheque has cleared the bank and been deposited in your/your solicitors account, the mortgage is considered drawn down. Issuance of the cheque is a step in that process, but until the money leaves the bank, it would normally be considered to still be with them. Of course you should contact someone in the bank who is in a position to confirm this 100% definitely. You still have a week- so while time is short, you do have time to chase this up.

Thanks smccarrick, I tried ringing tonight but have to ring back tomorrow to get definite answer. So from what you are saying, you reckon even though my solicitor has the cheque, he has to lodge it before its drawn down? God I still have snag list to do, I hope he will agree to lodge it before snag list done...

The_Conductor

tw0nk wrote:

Thanks smccarrick, I tried ringing tonight but have to ring back tomorrow to get definite answer. So from what you are saying, you reckon even though my solicitor has the cheque, he has to lodge it before its drawn down? God I still have snag list to do, I hope he will agree to lodge it before snag list done...

Thats my personal thoughts on it. Ring someone in the bank who has the authority to confirm it (and will be willing to stand over what they say......) The offer you got is too good to miss. Confirm it with the bank though- before you take action on it.

Victor

Realise that with the drawdown you start paying immediately, not when you move in.

tw0nk

Victor wrote:

Realise that with the drawdown you start paying immediately, not when you move in.

Yup Im aware of that Victor but thanks for bringing it up, im prepared to start paying early just to avoid missing the lower rate...

jimmycrackcorm

relax, the 25th was just to make sure that the branch monthly mortgage figures are up. It just puts a bit of pressure on the buyer to get a move on quicker. Otherwise it would benefit the bank more to charge the higher rate.

tw0nk

jimmycrackcorm wrote:

relax, the 25th was just to make sure that the branch monthly mortgage figures are up. It just puts a bit of pressure on the buyer to get a move on quicker. Otherwise it would benefit the bank more to charge the higher rate.

Hmm im not so sure, i was reading about people getting stung with higher rate over on askaboutmoney.ie because they didnt draw down the money before a certain date...

templetonpeck

tw0nk wrote:

Hmm im not so sure, i was reading about people getting stung with higher rate over on askaboutmoney.ie because they didnt draw down the money before a certain date...

They will absolutely apply the higher rate if you don't drawdown in time. You need to get on the PTSB again and get a definite answer. I know they're awful for trying to get through to on the telephone, but you have got to clarify this. Though, as some one else pointed out, you will pay interest and face monthly repayments as soon as the cheque is cashed.

You certainly have gone through the process of drawing down the cheque, which is part A of the process, cashing it being part B. As far as I am aware you should be given the lower rate because you have done what they asked, ie drawn down the cheque. I but the only word I'd go on is that of PTSB. You need a definite answer from them.

tw0nk

Hi All, well got through to permanent tsb and was delighted to be put through to a very helpfull person there, she checked my a/c and told me that my rate was staying at lower rate as the date they use for drawing down mortgage is the date they issue the cheque to your solicitor.

Thanks for all input, its a huge relief to get the lower rate, talk about panic stations!

templetonpeck

tw0nk wrote:

Hi All, well got through to permanent tsb and was delighted to be put through to a very helpfull person there, she checked my a/c and told me that my rate was staying at lower rate as the date they use for drawing down mortgage is the date they issue the cheque to your solicitor.

Thanks for all input, its a huge relief to get the lower rate, talk about panic stations!

Nice one!!!