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New Building Regs and Mortgage

  • 14-09-2015 8:00pm
    #1
    Timmy9
    Registered Users, Registered Users 2 Posts: 1 ✭


    Hi Everyone,

    Could someome please help me. Hoping to start work on a new house in the next couple of weeks and of course we waited for the new regs to change so we are opting out.

    We have an engineer to sign off on thr house along with a BER assessor.

    Does anyone know how, if at all, this would effect a mortgage? What do they mortgage providers need to draw down a mortgage? Does opting out effect it in anyway?

    Thanks....


Comments

  • #2
    DOCARCH
    Moderators, Home & Garden Moderators, Science, Health & Environment Moderators Posts: 18,450 Mod ✭✭✭✭DOCARCH


    If you have been approved for a mortgage you should speak with your mortgage provider.

    As the application of BCAR only changed less than two weeks ago it would be hard to say that all banks are o.k. with the changes.


  • #3
    Drift
    Closed Accounts Posts: 1,395 ✭✭✭Drift


    You are assuming that the bank has heard of BCAR in the first place DOCARCH ;)

    Nobody knows OP - The chances are the bank don't know themselves.

    Ask the bank to give you a list of exactly what paperwork is required for the draw down of each stage payment. This won't guarantee you won't get caught with a nasty surprise at the end - but it might help a little.

    Bear in mind that there is no retrospective way of achieving SI 9 compliance so if you opt-out and some smart arse in the bank decides half way through your build that he requires SI 9 paperwork you will be in a VERY tricky position.

    Let us know how you get on as we would all be interested to hear.


  • #4
    staples7
    Registered Users, Registered Users 2 Posts: 839 ✭✭✭staples7


    Im in the exact same position.

    Was fully prepared to opt out of the BCAR only to find that the Banks had very little knowledge and eventually came back saying that 'self build requirements continue irregardless of any watering down of the regulations.'

    I think in time they may be up to speed but I'm going under the standard control regs and take the hit with the engineers fees.


  • #5
    Drift
    Closed Accounts Posts: 1,395 ✭✭✭Drift


    'self build requirements continue irregardless of any watering down of the regulations.'

    Well that's a sentence from the bank that makes no sense.

    Talking of "self-build requirements" - there are no specific requirements in any legislation regarding "self-builds" which in turn is not a term that is defined anywhere.

    I strongly suspect that very few in the bank understand the legislation so they can't make a proper decision. Of course the whole thing is now such a massive quagmire that lack of understanding is understandable! ;)


  • #6
    DOCARCH
    Moderators, Home & Garden Moderators, Science, Health & Environment Moderators Posts: 18,450 Mod ✭✭✭✭DOCARCH


    Drift wrote: »
    I strongly suspect that very few nobody in the bank understand the legislation so they can't make a proper decision. Of course the whole thing is now such a massive quagmire that lack of understanding is understandable! ;)

    FYP :)

    If you read/try to fill out some of the forms the main banks issue, with regard to mortgages/building, it is pretty clear that the banks really have very little understanding of the process of building, either by means of 'self build' or building under contract.

    Most banks are only just getting their heads around SI9 (of March 2014)...and...now they have SI365 to deal with...expect a lag in anything close to understanding!


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  • #7
    galwaytt
    Registered Users, Registered Users 2 Posts: 12,822 ✭✭✭✭galwaytt


    Drift wrote: »
    Well that's a sentence from the bank that makes no sense...

    ...nothing new in that then........... :p:D

    Ode To The Motorist

    “And my existence, while grotesque and incomprehensible to you, generates funds to the exchequer. You don't want to acknowledge that as truth because, deep down in places you don't talk about at the Green Party, you want me on that road, you need me on that road. We use words like freedom, enjoyment, sport and community. We use these words as the backbone of a life spent instilling those values in our families and loved ones. You use them as a punch line. I have neither the time nor the inclination to explain myself to a man who rises and sleeps under the tax revenue and the very freedom to spend it that I provide, and then questions the manner in which I provide it. I would rather you just said "thank you" and went on your way. Otherwise I suggest you pick up a bus pass and get the ********* ********* off the road” 



  • #8
    supersub
    Registered Users, Registered Users 2 Posts: 5 ✭supersub


    I'm the the EXACT same situation. All ready to take the opt out option however the banks don't or won't give me a straight answer. I'm now looking down the barrel of the standard assigned certifier route....


  • #9
    MARYGAL34
    Registered Users, Registered Users 2 Posts: 9 ✭MARYGAL34


    I am in the same position. Mortgage approved but I want to opt out . There is a condition in my loan offer that I must provide the compliance cert adhering to si-9 regulations. I have asked mortgage advisor to go back to underwriters to take this condition out. I'll let you know how I get on.


  • #10
    anoble66
    Registered Users, Registered Users 2 Posts: 1,096 ✭✭✭anoble66


    same position, hoping to start very soon. After talking with the engineer I am probably going to stick with certification route. I think anything else is a gamble to be honest.


  • #11
    staples7
    Registered Users, Registered Users 2 Posts: 839 ✭✭✭staples7


    The way my builder put it to me - Why would the banks want to accept an opt out, its better for them to have it certified to the high hills.

    Im looking at 5K engineers fee's for SI9 & mortgage drawdown.


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  • #12
    Drift
    Closed Accounts Posts: 1,395 ✭✭✭Drift


    MARYGAL34 wrote: »
    There is a condition in my loan offer that I must provide the compliance cert adhering to si-9 regulations.

    This is the first I've seen where SI-9 is directly referred to by the banks. I'd be very interested to see how you get on MARYGAL.

    Can I ask what bank?


  • #13
    galwaytt
    Registered Users, Registered Users 2 Posts: 12,822 ✭✭✭✭galwaytt


    MARYGAL34 wrote: »
    I am in the same position. Mortgage approved but I want to opt out . There is a condition in my loan offer that I must provide the compliance cert adhering to si-9 regulations. I have asked mortgage advisor to go back to underwriters to take this condition out. I'll let you know how I get on.

    It will be an interesting response, but if you were a bank, you wouldn't take it out..............consider; some years down the road, the bank takes possession (for whatever reason) and they need to sell: they'd have no certs. In which case the property would be worth less than they've mortgaged it for..............can't see any bank going with that tbh.

    Ode To The Motorist

    “And my existence, while grotesque and incomprehensible to you, generates funds to the exchequer. You don't want to acknowledge that as truth because, deep down in places you don't talk about at the Green Party, you want me on that road, you need me on that road. We use words like freedom, enjoyment, sport and community. We use these words as the backbone of a life spent instilling those values in our families and loved ones. You use them as a punch line. I have neither the time nor the inclination to explain myself to a man who rises and sleeps under the tax revenue and the very freedom to spend it that I provide, and then questions the manner in which I provide it. I would rather you just said "thank you" and went on your way. Otherwise I suggest you pick up a bus pass and get the ********* ********* off the road” 



  • #14
    Drift
    Closed Accounts Posts: 1,395 ✭✭✭Drift


    To play devils advocate galwaytt -

    Up until 2014 that was the case for all houses. (i.e. No BCARs certification). In order to finalise the mortgage the bank required their own bespoke form to be completed and most of the time an Opinion on Compliance.

    Presumably the theory of the opt-out system is that things will return to this "norm."

    I'm not sure Pandora can be shoe-horned back into this particular box (or that she should be) but plenty of people will try!


  • #15
    sydthebeat
    Subscribers Posts: 42,171 ✭✭✭✭sydthebeat


    from what ive seen AIB at least have gone back to pre SI 9 conditions

    see here
    http://www.moneyadvice.ie/productlibrarydocuments/aib_self%20build_costings_template%202010.doc


  • #16
    galwaytt
    Registered Users, Registered Users 2 Posts: 12,822 ✭✭✭✭galwaytt


    Drift wrote: »
    To play devils advocate galwaytt -

    Up until 2014 that was the case for all houses. (i.e. No BCARs certification). In order to finalise the mortgage the bank required their own bespoke form to be completed and most of the time an Opinion on Compliance.

    Presumably the theory of the opt-out system is that things will return to this "norm."

    I'm not sure Pandora can be shoe-horned back into this particular box (or that she should be) but plenty of people will try!

    All true: but that was also in an era of 'undertakings' to do X, Y & Z......and left banks with a lot of mortgages and no proper paperwork for the actual asset .

    But there again, maybe they've learnt nothing :pac:

    Ode To The Motorist

    “And my existence, while grotesque and incomprehensible to you, generates funds to the exchequer. You don't want to acknowledge that as truth because, deep down in places you don't talk about at the Green Party, you want me on that road, you need me on that road. We use words like freedom, enjoyment, sport and community. We use these words as the backbone of a life spent instilling those values in our families and loved ones. You use them as a punch line. I have neither the time nor the inclination to explain myself to a man who rises and sleeps under the tax revenue and the very freedom to spend it that I provide, and then questions the manner in which I provide it. I would rather you just said "thank you" and went on your way. Otherwise I suggest you pick up a bus pass and get the ********* ********* off the road” 



  • #17
    Drift
    Closed Accounts Posts: 1,395 ✭✭✭Drift


    I think it's all dependant on the difficulty or otherwise that banks have had recouping their money on seized assets.

    If a bank force a defaulting owner who owes them X amount to sell and he gets [Value - X] for his property with X being the decrease in value due to poor paperwork do the bank really care - because the remaining debt after the sale follows the owner anyway whether it is [X - Value] or [X - ( Value - B)].

    If the negative equity did not follow the borrower after a forced sale (or reposession) then the banks would be hurt by poor paperwork. But in the current system of Alsop Auctions and buyers not being diligent I'm not sure poor paperwork is actually showing up as a financial problem on their books so they might not care.


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