Picking a mortgage provider

buffalo

I've been trying to find an answer to this question online without much luck. Before I go talk to a broker/bank/solicitor, maybe someone here would know.

We're heading towards signing contracts for a new-build, which won't be built until later this year. I believe we need a mortgage approval from the bank for the specific property before signing (in the next month or so). The mortgage won't be drawn down until later in the year, at which point the rates will be set by the bank (we can't lock them in now).

My question is, do we have to stick with the bank that we use when signing?

The fear is that we get an approvals from KBC and AIB. We sign the contract using KBC, but in a few months AIB offer better rates than KBC. Can we draw down on the AIB offer, or do we have to stay with KBC?

Thanks in advance!

Ronaldinho

buffalo wrote: »

I've been trying to find an answer to this question online without much luck. Before I go talk to a broker/bank/solicitor, maybe someone here would know.

We're heading towards signing contracts for a new-build, which won't be built until later this year. I believe we need a mortgage approval from the bank for the specific property before signing (in the next month or so). The mortgage won't be drawn down until later in the year, at which point the rates will be set by the bank (we can't lock them in now).

My question is, do we have to stick with the bank that we use when signing?

The fear is that we get an approvals from KBC and AIB. We sign the contract using KBC, but in a few months AIB offer better rates than KBC. Can we draw down on the AIB offer, or do we have to stay with KBC?

Thanks in advance!

Consult with your solicitor obviously but I'm 99.9..% sure it doesn't matter a jot.

The developer just want to protect themselves by making sure the purchaser has approval. They're totally indifferent as to what bank you finance the purchase through.

lau1247

i don't believe you are tied to it until you actually drawdown