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Mortgage - 2 quick questions

  • 18-12-2015 1:35pm
    #1
    digiman
    Registered Users, Registered Users 2 Posts: 4,258 ✭✭✭


    Hi, I'm very close to signing contracts on a new build. I've asked the solicitor can he put in a condition that the contracts are subject to the bank issuing a cheque for the mortgage or something similar. He says that the contracts have to be unconditional but that is obviously riskier for me should the bank decide in the new year to let me drawdown on the mortgage. My mortgage advisor I am dealing with in BOI says that this is a pretty standard request and should be accepted but solicitor says no. Any advice?

    Secondly I've got a mortgage offer from BOI that is subject to a host of conditions like proving my salary, savings etc. I've got all this done now and have email confirmation saying that all is ok and I can exchange contracts. However I want an updated mortgage offer with those conditions removed but I am told that they don't do this and it's based on the original offer. Again wondering is this normal and should I accept that?


Comments

  • #2
    Evil-p
    Registered Users, Registered Users 2 Posts: 130 ✭✭Evil-p


    Our solicitor definitely added a clause on a contract to say sale was subject to mortgage draw down.

    This thread has lots on it http://www.boards.ie/vbulletin/showthread.php?t=2056808324

    http://www.askaboutmoney.com/threads/bank-reserving-right-to-revoke-loan-offer-before-draw-down.193533/


  • #3
    Butters1979
    Registered Users, Registered Users 2 Posts: 1,164 ✭✭✭Butters1979


    Contract subject to loan approval is extremely standard, I would advise you to not sign any contract without it and to be honest if your solicitor will not add this then I would change solicitors.


  • #4
    digiman
    Registered Users, Registered Users 2 Posts: 4,258 ✭✭✭digiman


    Butters1979 wrote: »
    Contract subject to loan approval is extremely standard, I would advise you to not sign any contract without it and to be honest if your solicitor will not add this then I would change solicitors.

    Would you say this for a new build also? I've heard it is more standard for a 2nd hand build.


  • #5
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    digiman wrote: »
    Would you say this for a new build also? I've heard it is more standard for a 2nd hand build.

    It's standard but the vendor can refuse to allow it in the contract. You run a greater risk on a new build of the vendor (assuming a developer here) telling you to naff off if you insist on it's inclusion.


  • #6
    Flatzie_poo
    Registered Users, Registered Users 2 Posts: 562 ✭✭✭Flatzie_poo


    Butters1979 wrote: »
    Contract subject to loan approval is extremely standard, I would advise you to not sign any contract without it and to be honest if your solicitor will not add this then I would change solicitors.

    It is standard, but not every deal is standard.

    The vendor I dealt with refused this clause also.

    I went to my advisor and asked how solid is my application, he advised me it would be ok to proceed. I drew down with no issues.

    It is risky OP, but confer with your advisor. He'd have the best knowledge in relation to your application success.

    One reason this may have been refused is if the vendor is locked up in a purchase chain.

    They can get their approval faster if this clause is not there.

    Good luck OP, but this question is best for your mortgage advisor!


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  • #7
    Butters1979
    Registered Users, Registered Users 2 Posts: 1,164 ✭✭✭Butters1979


    Sorry I was under the impression it was the buyers solicitor that refused to add them to the contract, which seemed very strange to me.
    Even so I can't see a good reason the vendor would refused something like this. If the bank don't give you the money for some reason, you're not going to be able to buy it are you? I personally would not sign any contract without it, there is no reason to expose yourself like that, even if the risk is very small.


  • #8
    Flatzie_poo
    Registered Users, Registered Users 2 Posts: 562 ✭✭✭Flatzie_poo


    Butters1979 wrote: »
    Sorry I was under the impression it was the buyers solicitor that refused to add them to the contract, which seemed very strange to me.
    Even so I can't see a good reason the vendor would refused something like this. If the bank don't give you the money for some reason, you're not going to be able to buy it are you? I personally would not sign any contract without it, there is no reason to expose yourself like that, even if the risk is very small.

    You can be held for specific performance, which mean that you're bound to the contract as you signed it.

    You lose your booking deposit minimum. That's 10% of total purchase price (excl. stamp duties.)

    It's risky dependent on how financially sound you are basically.

    OP's solicitor will advise him not to go for it. If he's good.

    The mortgage advisor is the best person who knows the likelihood of success/failure with the application. That's what he's there for. Talk to him/her in detail.

    Weigh up everything OP. It's difficult situation. Worked out for me, but that doesn't mean it will for you.


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