Mortgage loan offer not honoured by Bank of Ireland

m.elliott

Hi,

Does anyone have any advice on what to do if our mortgage loan offer is not being honoured by Bank of Ireland?

We purchased a traditional farm house renovation project, and were requested to prove capacity to the value of €55 000 for the restoration works. Our loan offer contract stipulates that the value for mortgage purposes is €115 000, which includes the purchase price of the property + renovation works. This value was calculated by the banks independent valuation team, and is the value of the property after the restoration works are complete.

Now that the works are almost finished, and actually ended up costing €82 000 to complete, Bank of Ireland are not mortgaging the new value of the property (€115 000). They are only mortgaging the purchase price.

We have spent all of our savings and have taken out expensive short-term loans to cover the restorations, based on the mortgage advice from our branch in Drumcondra and the details stipulated in the contract.

We were totally misled by our mortgage adviser at Bank of Ireland.

Furthermore, in our initial mortgage application, we explained that we wanted to renovate the farm house over a few years, but our branch insisted that we re-apply and show capacity to do all of the works at the very beginning.

Thanks in advance for any advice.

Regards,
Jamie

The_Morrigan

Speak to a solicitor about this please. Legal advice may not be sought or given here.