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18-06-2019, 10:55   #8386
GingerLily
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Originally Posted by deisedude View Post
If anything went wrong we would lose the deposit on the house once we sign the contract. I mean nothing should but don't want to take a chance either.

Will give the bank a ring today and see whats up
Have you asked your solicitor to get a Subject to Loan clause inserted?

The vendor won't put it in without being pressed, and usually they don't put up much resistance.

If our experience is anything to go by, it's a fairly quick and easy thing for them to update.
This is not the case for a lot of developers recently. A lot of people in this forum were not able to get this clause added in when buying NEW developments.
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18-06-2019, 12:18   #8387
DemocAnarchis
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Quick question - at what point in the process do I need to actually contact/organise a solicitor? Looking to put an offer in any day now, but have never had any dealings with a solicitor. Do I need them lined up before I put an offer in?
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18-06-2019, 12:24   #8388
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Originally Posted by deisedude View Post
If anything went wrong we would lose the deposit on the house once we sign the contract. I mean nothing should but don't want to take a chance either.

Will give the bank a ring today and see whats up
That's the whole point of the "Subject to Loan Offer" clause. If anything goes wrong with the mortgage like you can't get a loan offer, the bank goes bust, your circumstances change and you can't do the final draw down etc. You will get your deposit back.

That's why if you have a "Subject to Loan Offer" clause in the contracts you should be 100% covered to proceed and sign anyway even though you don't have the formal Loan Offer yet.

Check with your solicitor to see if they're happy for you to sign rather than the bank.

In our case I had the Auctioneer pressing us to sign contracts telling us we were the last in the row to sign them, the loan offer wasn't the cause of the delay for us since our solicitor held firm as there was still stuff he wanted to clarify in the contracts.

We signed maybe a month after they wanted us to sign. No issues in the end.

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Originally Posted by el Fenomeno View Post
The vendor won't put it in without being pressed, and usually they don't put up much resistance.

If our experience is anything to go by, it's a fairly quick and easy thing for them to update.
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Originally Posted by GingerLily View Post
This is not the case for a lot of developers recently. A lot of people in this forum were not able to get this clause added in when buying NEW developments.
We had no issue getting the Subject to Loan Offer clause inserted either. It should be a pretty routine thing. Any solicitor worth their salt should be insisting on it being inserted.
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18-06-2019, 12:25   #8389
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Originally Posted by DemocAnarchis View Post
Quick question - at what point in the process do I need to actually contact/organise a solicitor? Looking to put an offer in any day now, but have never had any dealings with a solicitor. Do I need them lined up before I put an offer in?
No, you'll need one short after your offer is accepted.
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18-06-2019, 12:39   #8390
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We had no issue getting the Subject to Loan Offer clause inserted either. It should be a pretty routine thing. Any solicitor worth their salt should be insisting on it being inserted.
Thats a bit of an ignorant comment to be fair. Our solicitor tried, the developers didn't care and were able to deny it as there was a queue of waiting buyers.
We were strongly warned that it was risky, but if the seller doesn't want it, they don't have to include it.
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18-06-2019, 12:43   #8391
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That's the whole point of the "Subject to Loan Offer" clause. If anything goes wrong with the mortgage like you can't get a loan offer, the bank goes bust, your circumstances change and you can't do the final draw down etc. You will get your deposit back.

That's why if you have a "Subject to Loan Offer" clause in the contracts you should be 100% covered to proceed and sign anyway even though you don't have the formal Loan Offer yet..
Ours was a funny one, new build, and the gist of the clause was that we would make all reasonable attempts to get a loan offer if the original fell through. Our solicitor was OK with it, because our loan offer was fairly secure, and that we would probably be able to secure an alternative offer if anything happened, and worse case scenario she would argue that 'reasonable' was a bit open to interpretation
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18-06-2019, 12:56   #8392
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Originally Posted by GingerLily View Post
Thats a bit of an ignorant comment to be fair. Our solicitor tried, the developers didn't care and were able to deny it as there was a queue of waiting buyers.
We were strongly warned that it was risky, but if the seller doesn't want it, they don't have to include it.
Yes it's truly the seller's choice as it should be. Your experience isn't surprising in a seller's market.

However, my point is that any solicitor that isn't asleep at the wheel should definitely be requesting the clause be inserted if their client is dependent upon a mortgage from a bank to buy. Ignorance not intended.

EDIT: Didn't mean to quote you originally, apologies.

Last edited by z0oT; 18-06-2019 at 13:09.
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18-06-2019, 12:57   #8393
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Originally Posted by z0oT View Post
We had no issue getting the Subject to Loan Offer clause inserted either. It should be a pretty routine thing. Any solicitor worth their salt should be insisting on it being inserted.
Any solicitor can insist all they want. The developers solicitor can deny it if they want.
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18-06-2019, 13:25   #8394
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Originally Posted by GingerLily View Post
Thats a bit of an ignorant comment to be fair. Our solicitor tried, the developers didn't care and were able to deny it as there was a queue of waiting buyers.
We were strongly warned that it was risky, but if the seller doesn't want it, they don't have to include it.
Same experience here - solicitor tried but developer refused and plenty of people willing to take our spot if we pulled out.
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18-06-2019, 18:41   #8395
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Quick question; if a couple currently living in commuter-land with 2 cars which are needed for work, are planning to move to close to Dublin city centre which will allow them to get rid of one car... would a bank take this into account when calculating monthly outgoings.

What I mean is: can you say to them that the car costs €X per month, this will now be reduced to zero - similar to how current rent paid can be taken into account?
No. The only thing that would work in your favour is if there was a car loan which would be cleared from the sale of the car, thus one less formal outgoing which increases repayment capacity.
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18-06-2019, 22:22   #8396
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Mortgage approved

Hi there

We are approved with AIB and they are awaiting our decision on whether we want fixed rate or variable.

5 year fixed rate is 2.85% does this sound like a good deal?
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18-06-2019, 22:37   #8397
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If I was to speculate, I'd consider the below:

1) ECB just signaled it may be dropping the rates further.
2) Global economies aren't doing that great, brexit looming, trade war etc
3) Irish mortgage rates are still the highest in the Eurozone. Good rate in Europe would be 1.25% and not 2.6%
4) Irish banks may be inclined towards reducing the rates as the bad mortgages clear off

So again, if I was to speculate, I'd go variable or fix for a shortest time possible and watch how the events unveil.
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19-06-2019, 00:06   #8398
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Originally Posted by Blanco100 View Post
Hi there

We are approved with AIB and they are awaiting our decision on whether we want fixed rate or variable.

5 year fixed rate is 2.85% does this sound like a good deal?
Yes it is a good deal. You're not going to get much of a lower rate and you have certainty over your payments for the next 5 years, there is a lot to be said for peace of mind. You should ignore advice such as

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I'd consider the below:

3) Irish mortgage rates are still the highest in the Eurozone. Good rate in Europe would be 1.25% and not 2.6%
Because it's completely and utterly irrelevant, you can't get a rate of 1.25% in Ireland so you may as well spend your time yelling at clouds.


If something massively better comes along in the short term then you can break your fixed contract, it isn't that expensive anymore as the bank can't apply punitive fees anymore, only recoup potential losses on their own borrowings.
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19-06-2019, 00:14   #8399
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Some of those cash back offers might be better. A 3% fixed rate for 5yrs with cashback would be better offer than a straight 2.85% rate if going fixed.
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19-06-2019, 00:27   #8400
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Some of those cash back offers might be better. A 3% fixed rate for 5yrs with cashback would be better offer than a straight 2.85% rate if going fixed.
That's what I did, house needed a little bit of work and the cashback was worth far more to me up front than the savings over the course of the fixed term. So agree with this, do your sums.
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