Avoid Haven Mortgages if buying a new property

G_unit

Avoid these guys like the plague!! They've just completely shafted my bro

He is just due to close on his new house & Haven have decided they don't want to lend him what they first said they would as they reckon his house has fallen in value.... so they don't want to honour his Loan Offer The guy only put his deposit down 6 months ago... I mean, they could have told him before now instead of leaving him high & dry... he's now left 5 grand short & has the builder harassing him!

Avoid I tell you's!

P.S. He also says they keep putting up his interest rate... his broker told him they've done this a few times even though the Euro rate hasnt gone up

tHE vAGGABOND

It seems to have become a common practice to banks change their mind like this, its not just Haven...

To be fair, its very possible that the house has indeed fallen in value, maybe by a significant amount, so its not THAT unreasonable on their part to be totally honest.

G_unit

tHE vAGGABOND wrote: »

It seems to have become a common practice to banks change their mind like this, its not just Haven...

To be fair, its very possible that the house has indeed fallen in value, maybe by a significant amount, so its not THAT unreasonable on their part to be totally honest.

well he says he's been told that Haven Mortgages are the only bank who are doing this. Sure I closed my own new house purchase about 2 months back with Bank of Scotland. My property had fallen in value quite a bit during that time & no questions were asked, my loan offer was in place almost a year at that stage. Anyway sure arent Haven owned by EBS? I hear they had a few wee problems on over borrowing with the European Central Bank.

seamus

Has he actually signed contracts with the builder or has he just put the deposit down?

This is fairly common. Most loan offers are only valid for a few months, so in order to secure your mortgage you essentially need to reapply, at which point the banks use the current lending rules and rates. Both of which have become more punitive in the last 6 months.

G_unit

ah yeah he signed ages ago once he'd got his Loan Offer in place. I mean, if banks like this want to shaft their customers like this why do they bother giving people mortgages for new builds when they're buying from plans. It's also quite bad form for them to tell him literally 2 days before he's due to close that he needs over 4 grand of his own to complete.

I think Haven should be prevented from lending to people purchasing properties off plans from builders.

gurramok

Aren't Haven Irish version of sub-prime?

In that they can charge what they like to screw the borrower?

G_unit

sub prime mortgages... I'd love to meet the guy who dreamed up this brilliant idea!!

AS far as I know they're not Sub Prime... sure my bro is a first time buyer, dont sub prime lenders only do remortgages?

tHE vAGGABOND

As far as I know Haven are the branch of EBS who deal with brokers - they are only new. [For reasons I have never bothered to check up on, most banks/building society's don't like dealing with brokers]

It's also quite bad form for them to tell him literally 2 days before he's due to close that he needs over 4 grand of his own to complete

TBH, without knowing any details it sounds like if his broker was on the ball they would have confirmed the offer a few weeks ago. This problem would have arisen then. For them to change their mind at the very last second does not make sense..

I got my mortgage offer [from Haven ironically] about a year before I closed. So about 2 or 3 months before I closed we contacted them again to ensure all was good. We had to jump through a few hoops again, and it was all good.

As Seamus said, the offer is only valid for a few months, after that they can do what they like..

Victor

So, does your borther watch the news? Did he think he has immune from the fall out from the problems in the banking system?

Has he asked other banks for a mortgage?

havana

Plenty of other banks are doing this - mine included, now meaning I probably can't afford to close, so its probably unfair to suggest people avoid them like the plague for this reason!

The_Conductor

Bank of Ireland are doing the exact same.
The reason the rate has risen is not to do with the ECB base rate- its to do with the Euribor rate (the rate at which Eurozone banks lend to each other) which is currently up over 7%.

Unfortunately its a sympthom of the credit squeeze, and is no way related to Haven Mortgages or any particular company. We have become used to easy credit over the past few years- now, not only are rates higher, but its a whole lot more difficult to get credit full stop.

S.

Patrickof

In fairness to the banks involved, they instruct a local valuer to go and value the house prior to issuing the mortgage and its this value that they lend against.

If a long period has elapsed between the loan offer and the valuation taking place then there is a very good chance the value of the house has dropped.

antoinolachtnai

one-week euribor is 4.78 percent by my reading.

http://www.euribor.org/html/content/euribor_data.html

The longer-term rates go up to 5.4 or so. But not to 7.

The_Conductor

antoinolachtnai wrote: »

one-week euribor is 4.78 percent by my reading.

http://www.euribor.org/html/content/euribor_data.html

The longer-term rates go up to 5.4 or so. But not to 7.

My apologies- I should have specified yesterday's overnight interbank lending rate (which does swing quite wildly on a day to day basis)- which for Irish banks was at 6.84% for amounts over EUR10m (which is just under a full percent over Euribor panel rates). The longer term rates tend to be a good deal lower.

The issue I was highlighting was the lack of availability of immediate liquidity for Irish financial institutions- other than ECB window lending, which looks really bad in the media.

NAJL

I know this post is quite old, but felt i had to respond anyway.

Why would your brother or any other person want to pay anymore for a house than it was actually worth?
Thats why this country's property market is in a mess, from people paying way over the odds and not caring how much money they spend.

Surely Haven Mortgages did him a favour.

If god forbid your brother lost his job, couldnt afford the repayments, and the bank had to take the house off him, they would make the money back on it when it was sold due to the decrease in its value.

If I found out that a House I was purchasing was after falling in value, I would want the contract re-negotiated.

To clarify Haven Mortgages is NOT a sub-prime lender.

As regards to the comments on the Rates, All lenders were increasing rates at the time of the post and not just Haven.
May I aslo point out Haven would the first to lower rates at times when they are decreasing.

SkepticOne

NAJL wrote: »

I know this post is quite old, but felt i had to respond anyway.

Why would your brother or any other person want to pay anymore for a house than it was actually worth?
Thats why this country's property market is in a mess, from people paying way over the odds and not caring how much money they spend.

Surely Haven Mortgages did him a favour.

He still has to problem of getting out of the contract with the builder who will still want his money regardless.

TwoShedsJackson

NAJL wrote: »

I know this post is quite old, but felt i had to respond anyway.

First post after registering is to drag up an eight month old thread to defend their good name, thanks for that Haven Mortgages :rolleyes:

Newaglish

As regards to the comments on the Rates, All lenders were increasing rates at the time of the post and not just Haven.
May I aslo point out Haven would the first to lower rates at times when they are decreasing.

I wasn't certain you were a shill until the end of your post.

Firetrap

Only having 1 or 2 posts tends to be a giveaway as well...

The_Conductor

What this- the rise of the zombie threads?
Stay dead this time!!!