Mortgage Offer Expiry Date For Self Build

butsy1981

After jumping through many hoops I finally got my letter of offer from AIB today for a self build mortgage. Although I haven't yet had a chance to go through it with my solicitor and architect, one thing that jumps off the page is that there is an expiry date for the final draw down of 31/12/2013 and any extension is at the banks discretion.

This is a completely unrealistic expiry date for a self build which in all likelihood won't even start until August or later. Given the difficulties I've had getting this letter of offer, I don't relish the possibility of having to re-apply mid build.

Has anyone else experienced this issue in the past and if so how did you overcome it?

D3PO

your worrying over nothing. They aren't going to leave you with a half a shell, deep breath relax.

by default there letters of offer last 6 months that's normal, you wont have an issue extending.

killers1

butsy1981 wrote: »

After jumping through many hoops I finally got my letter of offer from AIB today for a self build mortgage. Although I haven't yet had a chance to go through it with my solicitor and architect, one thing that jumps off the page is that there is an expiry date for the final draw down of 31/12/2013 and any extension is at the banks discretion.

This is a completely unrealistic expiry date for a self build which in all likelihood won't even start until August or later. Given the difficulties I've had getting this letter of offer, I don't relish the possibility of having to re-apply mid build.

Has anyone else experienced this issue in the past and if so how did you overcome it?

The AIB loan offer expiring on the 31st Dec 2013 means that you have to have drawn down the first stage payment by this date as opposed to the last one. Once you have drawn down any amount in the next 6 months you can drawdown the rest of the funds at any time in the future as AIB don't put an expiration date on a self build loan. With AIB you have until the 31/12/13 to drawdown some portion of the mortgage otherwise you would need to reapply for mortgage approval.

butsy1981

It definitely said "final draw down" expires on 31/12/2013; I had my solicitor review it and she agreed that they weren't allowing enough time for a self build mortgage. I'm waiting on the mortgage advisor to contact me to clarify the banks position. It could be worrying over nothing and as D3PO suggested it's not in the banks interest to leave me with a half finished house. I'm just trying to pre-empt any potential issues with the bank as they've been very awkward to deal with up to this point and I want to avoid any problems that might occur while building.

killers1

butsy1981 wrote: »

It definitely said "final draw down" expires on 31/12/2013; I had my solicitor review it and she agreed that they weren't allowing enough time for a self build mortgage. I'm waiting on the mortgage advisor to contact me to clarify the banks position. It could be worrying over nothing and as D3PO suggested it's not in the banks interest to leave me with a half finished house. I'm just trying to pre-empt any potential issues with the bank as they've been very awkward to deal with up to this point and I want to avoid any problems that might occur while building.

I guarantee you it just means that the 31/12/13 is the final date by which you need to have drawn down some portion of the loan. It's worded that way on all AIB stage payment loan offers.

butsy1981

You are probably correct, but it's how they've worded it leaves it open to interpretation. I've just spoken to the mortgage advisor and she said it usually refers to the expiry date of the first draw down, but because she doesn't have a copy of the letter of offer she advised getting my solicitor to clarify with the home loans department.

Victor

Confirm the situation with the bank.

butsy1981

Finally clarified. They had put the incorrect date on the letter of offer but have since revised it. Another hurdle cleared!

jenningso

butsy1981 wrote: »

Finally clarified. They had put the incorrect date on the letter of offer but have since revised it. Another hurdle cleared!

Can I ask how long they gave you to complete the self build?