Losing a mortage exception

dev_ire

Hello,

is it possible to lose your mortgage exception? Say you are approved for 12 months. Can you be re-assessed before you draw down without your circumstances changing?

jwabh

dev_ire wrote: »

Hello,

is it possible to lose your mortgage exception? Say you are approved for 12 months. Can you be re-assessed before you draw down without your circumstances changing?

Yeah it's possible. It happened to me. I only had it 5 months and I told them I decided on a house and they told me my excemption was gone

dev_ire

What did you do?

jwabh

dev_ire wrote: »

What did you do?

Went to another bank. Ebs had exemptions and I'm currently using them.

Looking back I'd never just get it from one bank

dev_ire

BOI are the only bank to do cash back though. I do have another loan offer but BOI is the best deal.

rachieqtpie

dev_ire wrote: »

Hello,

is it possible to lose your mortgage exception? Say you are approved for 12 months. Can you be re-assessed before you draw down without your circumstances changing?

Yes it happened to us in may. Boi ran out of exceptions and we had to apply elsewhere!

Q&A

dev_ire wrote: »

BOI are the only bank to do cash back though.

EBS and PTSB both offer 2% cashback while Ulster offer €1.5k.

dev_ire

I can not find anything online that says this can happen. I can see it has happened but are they just chancing their arm or are just useless?

GingerLily

dev_ire wrote: »

I can not find anything online that says this can happen. I can see it has happened but are they just chancing their arm or are just useless?

What do you mean?

dev_ire

I mean nowhere online does it say your mortgage approval is for one house and if you change to want to buy another house you have to do a new application and with a new application the exception could be gone.

This is all inside one year.

The mortgage amount is not changing, the term is not changing. The property price is basically the same with more than enough proof of funds.

Thomas

dev_ire wrote: »

I mean nowhere online does it say your mortgage approval is for one house and if you change to want to buy another house you have to do a new application and with a new application the exception could be gone.

This is all inside one year.

The mortgage amount is not changing, the term is not changing. The property price is basically the same with more than enough proof of funds.

Banks can’t reserve exceptions as window shoppers may have exceptions approved in principle from a number of banks yet will obviously only draw from one if at all.

Obviously stressful if your budget is based on an exception. I think the Central Bank needs to allow banks cater for cases like this if you are eventually successful in finding a house.

dev_ire

Then they should not tell you you have 12 months approval.

They should say 12 months on this and only this house or x monnths on any similar property.

Thomas

dev_ire wrote: »

Then they should not tell you you have 12 months approval.

They should say 12 months on this and only this house or x monnths on any similar property.

Wouldn’t disagree with that.

GingerLily

dev_ire wrote: »

Then they should not tell you you have 12 months approval.

They should say 12 months on this and only this house or x monnths on any similar property.

What bank are you with? What does the actual approval state? Usually it means you don't have to reapply, but I'd never assume that anything is ever done until its actually done.

dev_ire

Bank of Ireland. It states it lasts until January of next year.

But they are telling me the loan offer has one house specified so if that changes the whole things goes and I start the process from scratch.

lau1247

Yep it happens.. looks like you are with the same bank?

Saw this in the talk to section, https://www.boards.ie/ttfthread/2057878456

GingerLily

dev_ire wrote: »

Bank of Ireland. It states it lasts until January of next year.

But they are telling me the loan offer has one house specified so if that changes the whole things goes and I start the process from scratch.

The application process or approval process?

dev_ire

They said it would be a new process and they are out of exceptions. So it is essentially a new application.

GingerLily

dev_ire wrote: »

They said it would be a new process and they are out of exceptions. So it is essentially a new application.

They said you would have to resubmit everything?

dev_ire

GingerLily wrote: »

They said you would have to resubmit everything?

They said all the exceptions were gone, re-submitting everything minor so not sure what they said about that as I was focusing on the fact that I can now not can any property I have viewed for the last 6 months.

I would expect to have to to prove I still have the same salary, same repayment capacity etc.

catrionanic

Can I ask what bank this was with?

dev_ire

Bank of Ireland.

AIB said I would need to put back in payslips but would not lose my exception.

awec

This thread is really hard to understand.

Are you asking what happens if you get a formal loan offer on a specific property (i.e. you've actually bought a house), but then for whatever reason you back out of that and want to buy a different house instead?

dev_ire

I was issued a loan offer on a specific house.

But I was told that if I change the property once my circumstances had not changed and I was not looking for a higher loan amount the exception would not go away.

I have it in writing from Bank of Ireland that it would not be a new application and my exception would not go if I changed address.

Even bank of irelands website says it here https://personalbanking.bankofireland.com/borrow/mortgages/articles/how-the-mortgage-process-works/

"Step 7 The Offer"
and then
"Step 8 Find your dream home"

You can't have a loan offer on a specific house and then go looking for your "dream home" after.

awec

dev_ire wrote: »

I was issued a loan offer on a specific house.

But I was told that if I change the property once my circumstances had not changed and I was not looking for a higher loan amount the exception would not go away.

I have it in writing from Bank of Ireland that it would not be a new application and my exception would not go if I changed address.

Even bank of irelands website says it here https://personalbanking.bankofireland.com/borrow/mortgages/articles/how-the-mortgage-process-works/

"Step 7 The Offer"
and then
"Step 8 Find your dream home"

Ok, so what's the problem?

dev_ire

awec wrote: »

Ok, so what's the problem?

I was told I have a mortgage of 4.5 my salary, now I am told I will only be able to draw down 3.5 my salary.

awec

Ok, so you got an official loan offer on a specific house, and you now want to draw it down but the bank are saying they will no longer give you the mortgage amount they offered?

You say this official offer was valid for 12 months? But BOI usually only give 6 months, after which you will need to be re-assessed before drawing down. Are you sure it was 12 months?

Approval in principal is usually 12 months, but once you progress to formal offer stage it's usually brought down to 6.

dev_ire

awec wrote: »

Ok, so you got an official loan offer on a specific house, and you now want to draw it down but the bank are saying they will no longer give you the mortgage amount they offered?

You say this official offer was valid for 12 months? But BOI usually only give 6 months, after which you will need to be re-assessed before drawing down. Are you sure it was 12 months?

I was assured that changing the address of the house on my loan offer would not change the mortgage amount.

I was issued the loan offer in mid February so if it was 6 months it would still be until mid August. They told me they are out of exceptions now and would lose it now as I need a new application with a new house address.

Actually I did not receive my loan offer until Mid March so would be mid september.

syndrome777

dev_ire wrote: »

I was assured that changing the address of the house on my loan offer would not change the mortgage amount.

I was issued the loan offer in mid February so if it was 6 months it would still be until mid August. They told me they are out of exceptions now and would lose it now as I need a new application with a new house address.

this happend to a friend of mine in BOI. Had exception approved for a specific house (new build, which they didn't like n the end) , when they said they had a different house in mind they had to go through the process again and lost the exception.

That's why it's always better to go with AIP without a specific address in application.

dev_ire

syndrome777 wrote: »

this happend to a friend of mine in BOI. Had exception approved for a specific house (new build, which they didn't like n the end) , when they said they had a different house in mind they had to go through the process again and lost the exception.

That's why it's always better to go with AIP without a specific address in application.

My AIP lasts 6 months so they should not take away my exception either way as I am within 6 months of AIP and loan offer also.

testicles

This post has been deleted.

syndrome777

dev_ire wrote: »

My AIP lasts 6 months so they should not take away my exception either way as I am within 6 months of AIP and loan offer also.

and that would be the case if you didn't have the specified address.
The whole underwriting was done for that specific house, specific value and all and therefor it can't just be changed to any house now, they have to reassess and given there are n more exceptions you would only be offered 3,5 x salary.

I am not defending them, I had AIP last year with exception for 6 months and was not told on time that if that expires on my extension of my AIP I might lose my exception....which I did

dev_ire

syndrome777 wrote: »

and that would be the case if you didn't have the specified address.
The whole underwriting was done for that specific house, specific value and all and therefor it can't just be changed to any house now, they have to reassess and given there are n more exceptions you would only be offered 3,5 x salary.

I am not defending them, I had AIP last year with exception for 6 months and was not told on time that if that expires on my extension of my AIP I might lose my exception....which I did

I understand if the time lapses then I lose my exception.
But I am within the 6 months still.

They told me when I went for full approval that the address could be any address. They also did not say it could not be changed.
They also did not say wait until 2-4 weeks before your AIP is about to run out then go for full approval which at least would have meant I would have waited until I was verbally sale agreed on a house before naming that house as my only house to get a mortgage for.

Q&A

dev_ire wrote: »

I understand if the time lapses then I lose my exception.
But I am within the 6 months still.

They told me when I went for full approval that the address could be any address. They also did not say it could not be changed.
They also did not say wait until 2-4 weeks before your AIP is about to run out then go for full approval which at least would have meant I would have waited until I was verbally sale agreed on a house before naming that house as my only house to get a mortgage for.

Unfortunate but the bank has probably taken the view that your exemption is unique to that borrower-property combination. From the banks side no two houses are the same and they would need to formally asses the new property. Such demand for exemptions they just give it to the purchase next in line. Probably quicker for them. If this had happened earlier in the year you might have gotten away with it but exemptions are probably a scarce resource at this time of year.

Unfortunately the mortgage person you've been dealing with is just a sales man the underwriter is the one that makes the decision.

dev_ire

Q&A wrote: »

Unfortunate but the bank has probably taken the view that your exemption is unique to that borrower-property combination. From the banks side no two houses are the same and they would need to formally asses the new property. Such demand for exemptions they just give it to the purchase next in line. Probably quicker for them. If this had happened earlier in the year you might have gotten away with it but exemptions are probably a scarce resource at this time of year.

Unfortunately the mortgage person you've been dealing with is just a sales man the underwriter is the one that makes the decision.

But they gave me approval in principle of the same mortgage amount so I don't think it is about the property. Also they don't know the new property yet so it could not be about the differences.

jwabh

The way they remove it is as you move to property specific on a new property they have to issue you a new offer letter. At this point they pull it.

Aaron15

awec wrote: »

Ok, so you got an official loan offer on a specific house, and you now want to draw it down but the bank are saying they will no longer give you the mortgage amount they offered?

You say this official offer was valid for 12 months? But BOI usually only give 6 months, after which you will need to be re-assessed before drawing down. Are you sure it was 12 months?

Approval in principal is usually 12 months, but once you progress to formal offer stage it's usually brought down to 6.

We’re getting our mortgage with BOI and we’re approved for 12 months also, I’ve confirmed this with my mortgage advisor several times, once you’ve identified a property before applying they give you the loan offer for 12 months on a new build.

dev_ire

Aaron15 wrote: »

We’re getting our mortgage with BOI and we’re approved for 12 months also, I’ve confirmed this with my mortgage advisor several times, once you’ve identified a property before applying they give you the loan offer for 12 months on a new build.

Don't change your mind on your house though. I confirmed twice in writing (email) too.

Aaron15

dev_ire wrote: »

Aaron15 wrote: »

We’re getting our mortgage with BOI and we’re approved for 12 months also, I’ve confirmed this with my mortgage advisor several times, once you’ve identified a property before applying they give you the loan offer for 12 months on a new build.

Don't change your mind on your house though. I confirmed twice in writing (email) too.

we’re nearly at the end process and we’re happy with the house, I’m sorry to hear, I hope everything works out for you

dev_ire

Good luck with the new house. Thanks.

scwazrh

.

Captain Flaps

My experience with BOI matches OP.

Applied for mortgage with exception from them, KBC and AIB/Haven. KBC and AIB offered approval for 6 months, extended to 12 if the closing process dragged on - so basically 6 months not specific to a certain property, then an additional 6 months tied to one.

BOI required us to have a property in mind to process the quote, and were really unhelpful when I pointed out that waiting until we had a house in mind to start applying for approval would mean multiple applications as we were outbid etc.

dev_ire

BOI have honoured my approval but will now only change it once. So if anyone sees this be careful going to loan offer before you are sure of the house you want or go with AIB or some place that will allow you more freedom.

jaffa20

I'm very confused. Are BOI only giving loan offers on specific properties? That doesn't make sense. I am waiting now on news from them after submitting all documents but i have not found no property yet. I am a 2nd time buyer and need to sell my house first.

I might just apply to broker at the same time in case there is issues or maybe EBS who just launched 2% cashback might be an option. Can you still get cashback via a broker?

astrofool

jaffa20 wrote: »

I'm very confused. Are BOI only giving loan offers on specific properties? That doesn't make sense. I am waiting now on news from them after submitting all documents but i have not found no property yet. I am a 2nd time buyer and need to sell my house first.

I might just apply to broker at the same time in case there is issues or maybe EBS who just launched 2% cashback might be an option. Can you still get cashback via a broker?

I think it's only when granting an exception, they need to see that the type of property being bought is one that would meet the criteria for an exception, so providing the property that ends up being bought is of similar "spec" then the offer will be valid.

The banks are also limited in the number of exceptions they can loan, so if everyone who as an exception approval draws down before you, then they may not be allowed to honour the exception that they allowed in principle (and not much they can do about it), all banks will be limited by this, so you're just gambling on which banks are getting all the exception draw downs or not.

dev_ire

astrofool wrote: »

I think it's only when granting an exception, they need to see that the type of property being bought is one that would meet the criteria for an exception, so providing the property that ends up being bought is of similar "spec" then the offer will be valid.

The banks are also limited in the number of exceptions they can loan, so if everyone who as an exception approval draws down before you, then they may not be allowed to honour the exception that they allowed in principle (and not much they can do about it), all banks will be limited by this, so you're just gambling on which banks are getting all the exception draw downs or not.

Yes I had an exception. An exception should be an exception if they over provide them then that's just messing with people.

jaffa20

astrofool wrote: »

I think it's only when granting an exception, they need to see that the type of property being bought is one that would meet the criteria for an exception, so providing the property that ends up being bought is of similar "spec" then the offer will be valid.

The banks are also limited in the number of exceptions they can loan, so if everyone who as an exception approval draws down before you, then they may not be allowed to honour the exception that they allowed in principle (and not much they can do about it), all banks will be limited by this, so you're just gambling on which banks are getting all the exception draw downs or not.

Ah ok, that makes sense. i don't think i will need exception thankfully. My savings could be an issue though with stress testing

astrofool

dev_ire wrote: »

Yes I had an exception. An exception should be an exception if they over provide them then that's just messing with people.

That's the central bank rules, so you know where to complain (and if you read the approval documentation, it will say similar).

Other option is to relax the credit rules, but then you'd be here complaining about rapidly rising prices.

dev_ire

astrofool wrote: »

That's the central bank rules, so you know where to complain (and if you read the approval documentation, it will say similar).

Other option is to relax the credit rules, but then you'd be here complaining about rapidly rising prices.

I am aware of the rules. Bank of Ireland overstretched their limits and not me hence why they are honouring my exception.

The Sparrow

Captain Flaps wrote: »

My experience with BOI matches OP.

Applied for mortgage with exception from them, KBC and AIB/Haven. KBC and AIB offered approval for 6 months, extended to 12 if the closing process dragged on - so basically 6 months not specific to a certain property, then an additional 6 months tied to one.

BOI required us to have a property in mind to process the quote, and were really unhelpful when I pointed out that waiting until we had a house in mind to start applying for approval would mean multiple applications as we were outbid etc.

This is also similar to my experience with Bank of Ireland. I wanted to get AIP before looking at properties so that I would know how much I had to buy somewhere with. BOI refused to deal with me on that basis and would only process the application if I had a specific property in mind. When I asked what would happen if I didn't buy that property, they told me that my AIP and exceptions would be invalid and I would have to start the application process again.

Needless to say I took a walk at that point and went to AIB and EBS who were happy to process my application on its own merits without the need for a property to be specified. I know have AIP for 12 months from both.

Other than saying that is just how they operate, nobody in BOI could give me a good reason why they seem to operate differently to other banks in this regard. Not worth the hassle in my estimation, there are plenty of banks that are easier to deal with.

dev_ire

The Sparrow wrote: »

This is also similar to my experience with Bank of Ireland. I wanted to get AIP before looking at properties so that I would know how much I had to buy somewhere with. BOI refused to deal with me on that basis and would only process the application if I had a specific property in mind. When I asked what would happen if I didn't buy that property, they told me that my AIP and exceptions would be invalid and I would have to start the application process again.

Needless to say I took a walk at that point and went to AIB and EBS who were happy to process my application on its own merits without the need for a property to be specified. I know have AIP for 12 months from both.

Other than saying that is just how they operate, nobody in BOI could give me a good reason why they seem to operate differently to other banks in this regard. Not worth the hassle in my estimation, there are plenty of banks that are easier to deal with.

In my situation they told me the property was just a placeholder and I could change it, it was only when I went to get a new loan offer they rang and asked for new documentation and told me it would be a new process and all the exceptions were gone.

I agree other banks are easier and more logical but BOI have the best fixed rate and also cashback offer.