# Letter of offer for mortgage



## moondance (7 Aug 2007)

I got my mortgage approval and all documents in the week before last so the bank said they will have my letter of offer out as soon as they can. Anyone know how long this usually takes? I'm getting so impatient!


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## LDFerguson (7 Aug 2007)

Typical turnaround time should be a working week but service levels vary widely between lenders.


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## MortgageBrkr (8 Aug 2007)

Which Lender are you using?


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## moondance (8 Aug 2007)

It's First Active through a broker.


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## MortgageBrkr (8 Aug 2007)

Unfortunately you will be waiting a while, there not the most efficient.


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## moondance (8 Aug 2007)

Well flip it anyway, that's what I was worried about!  

I've been annoyig my broker loads, could I ask broker for a direct contact in the bank at this stage to get on their case or do I have to wait for this letter of offer?


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## ClubMan (8 Aug 2007)

MortgageBrkr said:


> Unfortunately you will be waiting a while, there not the most efficient.



So - they are like that with mortgages too...? 

First Active e-savings account


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## Caveat (8 Aug 2007)

Don't a lot of brokers wait until they have an 'economic' amount of mortgage requests to submit and therefore if the OP is the first in a 'new batch' they will be waiting a while - conversely, if they are e.g. applicant no. 20 they could expect a reasonably prompt response?


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## PM1234 (8 Aug 2007)

Caveat said:


> Don't a lot of brokers wait until they have an 'economic' amount of mortgage requests to submit and therefore if the OP is the first in a 'new batch' they will be waiting a while - conversely, if they are e.g. applicant no. 20 they could expect a reasonably prompt response?


 

I think you're spot on  

If that is the case with your offer, they may think you're being a little unreasonable. 

Moondance - give the broker a call and ask him to exert some pressure if you have a deadline.


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## moondance (9 Aug 2007)

Called the broker this morning and I've just been told she's on annual leave as of yesterday so now some other guy said he'd check it out and call me back. Hmmm, I have a feeling I'll be waiting! Nice of her to tell me she was going to be away. At this stage I have all the contracts with my solicitors, an apartment empty and ready to live in and this is holding me back. Luckily I know the developers personally so they've no date for contract signing set out but I just want to get moved in already!


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## Quest (9 Aug 2007)

Hi Moondance,
Do you mind me asking why it was left so late to get approval/docs to lender, if property ready to complete?


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## moondance (9 Aug 2007)

Quest said:


> Hi Moondance,
> Do you mind me asking why it was left so late to get approval/docs to lender, if property ready to complete?



Property was ready from when I first saw it. I decided I wanted it about 3-4 weeks ago, at that stage I had all my documents in with broker and had approval in principal for mortgage amount. So paid booking deposit. Then she (the broker) was waiting for banks to get back to her with best rates and 2 weeks ago I was going with Ulster Bank. But then at the beginning of last week she said she had got on to First Active again (they weren't keen on giving mortgage on 1 bed apt in first place) and they decided to give me mortgage anyway. They had better rate than UB for me so she said it could be anything between 5-10 working days for letter of offer to come out.


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## wirelessdude (9 Aug 2007)

i got my letter in 3days from BOI!!! couldn't believe it.....


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## moondance (9 Aug 2007)

Broker's colleague has now told me that I'll have it tomorrow or Monday. I think he may possibly be just trying to keep me quiet until my broker gets back on Monday... Called FA and was told that as I had dealt with a broker they can't give me any information direct.


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## cf29 (10 Aug 2007)

Just happened into this thread by accident and I'm taking some comfort fromthat fact that I am not the only person in this situation.  Am also dealing with the same lender and they'd would wear you down with delays, mind you I have a sneaking suspicion the broker didn't send in the application for formal loan approval when he was supposed to so I'm sure that didn't help the situation.  IThe joys of buying somewhere to live!


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## moondance (15 Aug 2007)

Update on this - I'm told by my broker letter of offer now due to be issued today! I'll believe it when I see it! Not sure if it's thr broker or First Active or both that's completely useless!


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## Caveat (15 Aug 2007)

As my above post Moondance, I'm pretty sure that this is what has happened.  

For various reasons, brokers don't usually submit these in dribs and drabs and rather wait until they have a reasonable amount & then submit all at once - some of these could at this stage be weeks old!


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## OneLife (15 Aug 2007)

Disclosure - I work for a Mortgage Broker.

With all respect to the above posters, the service levels with First Active are absolutely atrocious.

I personally know of a major Mortgage Broker in Dublin associated with an estate agency that have their clients sign a waiver, absolving the broker for any difficulties due to delays because the client chooses to proceed with First Active.

Now in fairness, it doesn't sound like you have had the best service to date from your current broker, with regard to cover over the holiday period, but First Active are not helping the matter.

The broker should be able to provide evidence of when they submitted the pack to First Active, should you need to dig any deeper


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## moondance (16 Aug 2007)

If I wasn't in such a hurry I would change to another bank now. I'm now assured they'll have letter out today (deja vu). Would it be a huge deal to switch as soon as possible to another bank once I've got the mortgage cheque or will it be very expensive?

Onelife - thanks for that. I really wonder why they recommended going with FA when they knew what they were like? I was actually going with Ulster Bank and then broker came back and said FA were .05% cheaper and I should go with them. Should they have told me there would be delays? She knew I was in a hurry.


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## OneLife (16 Aug 2007)

Ulster Banks service isn't much better to be honest - they're both owned by RBS (royal bank of scotland) - and have a centralised processing centre in Sandyford. They have been having huge issues in implementing new IT systems and processes as part of the RBS group strategy etc etc.


If your broker knew you were in a hurry - they probably should have advised you on possible delays.

However - it sounds like they were acting in your best interest regarding the rates etc

You can remortgage away from First Active at your leisure, though you will have to pay legal fees etc 
(unless you go with a lender who offers free legals - but you have to stay with them for 5 years or they will charge you for the legals)


As you have all your documentation and a valuation done, you could go to a lender today yourself and get a loan offer issued on Monday/Tuesday at best - if you get some good who knows how to walk an application through a lender.


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## moondance (16 Aug 2007)

Ok last question! If I do go to a lender today such as my local AIB with the intention of getting a loan offer early next week, what happens if I get the other letter of offer in the mean time? Do I have to take it? How long can I hold off? Alos the valuation was done (only yesterday) through my broker (I sent cheque to broker for it and they arranged it) so can I get a copy of it if I want to go ahead without broker?


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## OneLife (16 Aug 2007)

You are under no obligation to proceed with any lender at all.

You could have 10 loan offers issued, and sign and return all of them, and still be under no obligation. 

As a Plan B - it would definitely be worth putting wheels in motion. 

You are entitled to  a copy of the valaution report (although it will be done in First Active format) - the valuer will be able to redo the report in an AIB format (assuming they are on the AIB panel of valuers)

But by asking for the valuation report - you will be focussing the brokers and hopefully first actives minds - that they will lose the business unless they step up a gear.

Now as for AIB's turnaround times, i deal with them directly, i am not too sure of their processes with their branches etc.

Give them a call. Call IIB direct and possibly ICS (the mortgage store) - ICS have a great 2 year fixed at the moment - explain your situation, say you have the pack and valuation done for First Acrtive and ask them to commit to when they think they can get an offer out.


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## Dave Vanian (16 Aug 2007)

> You are entitled to a copy of the valaution report (although it will be done in First Active format) - the valuer will be able to redo the report in an AIB format (assuming they are on the AIB panel of valuers)


 
As far as I know, AIB don't have a panel of valuers.  They will accept a valuation from any IAVI auctioneer, so a First Active valuer should be acceptable.  In fact, AIB may even simply accept a First Active valuation report.


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## moondance (17 Aug 2007)

Got letter yesterday! Thanks for all the feedback!


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## pc7 (17 Aug 2007)

while i've had problems with FA esavings, they were fantastic 3 years ago with my mortgage and a few months ago with a top up had it within a few workings days so i'll give them that.  My friend is waiting over 2 months now on a top up for UB


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## Yellow Belly (17 Aug 2007)

I always laugh when I read posts such as 99% of what has been written in this thread.

What do you people expect from lenders or brokers for that matter? These people are not sitting scratching there thumbs waiting for your business to come in? Many of you may not realise that your letter of offer is in effect *a legal document* which must be carefully prepared, and the lender must be fully satisfied with all conditions contained therein, and also they will always do a final check on your application details to make sure they are happy to lend to you. (Approvals in principle- are not worth the paper they are written on, and are not legally binding)

The original poster said that they only decided to run with First Active (who do have a terrible service record- both to brokers & on the legal/drawdown side) 2 weeks ago, and is now trying to harrass a letter of loan offer. Might I remind everyone that 2 working weeks, is 10 days- if there is any DX, postage or other delay, or indeed if a new valuation on the property is required this will all take at least 50-60% of that time, and that also asssumes no existing backlogs in administration.

As a former banker it makes me laugh at the expectations of people in relation to mortgages. These are not terms loans, or overdraft tops- they have to be legally registered & stamped, therefore all documents etc have to be perfect. Just because you can call up your bank or broker for a car loan, and have the money approved, and issued within 2 days does not mean that the same process holds true for mortgages.

One other point I wish to make is that many posters seem to have a very sceptical view of brokers, with accusations of holding applications etc. While I cannot comment on individual cases, brokers are by far the best way for mortgage borrowers to arrange their finance. They are a marvellous assistance is tersm of providing choice, independent information, and indepth knowledge of the products available on the entire market (assuming you deal with a fully authorised broker whom holds at least 12-14 appointments). Any non financially employed applicant who thinks he/she can comprehensively research all products (close to 1,000 different options) is kidding themselves ( A little bit of information is a dangerous thing!!). All financial products are designed with inherent terms & conditions, and quite often they may not be in reality what they seem on paper- why do you think that the Irish banks are so profitable? A good broker can be invaluable in breaking down each product to help you in finding the most suitable mortgage for you, and in many cases they are not charging you a fee, and are rather paid in commission by each lender. This in my view is over half the problem- if they were charging you a hefty fee maybe their excellent assistance would be more appreciated!

By the way I am not a broker or do not have a connection with one. I am just someone who understands the financial system inherently, and gets incensed when I read of unrealistic expectations of any industry from people who have very little concept what is ACTUALLY involved.

By the way best of luck with repaying the mortgages, hopefully you all will be as demanding on yoursleves when it comes to making the sacrifices to make the repayments!


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## moondance (17 Aug 2007)

Yellow Belly said:


> I always laugh when I read posts such as 99% of what has been written in this thread.
> 
> What do you people expect from lenders or brokers for that matter? These people are not sitting scratching there thumbs waiting for your business to come in? Many of you may not realise that your letter of offer is in effect *a legal document* which must be carefully prepared, and the lender must be fully satisfied with all conditions contained therein, and also they will always do a final check on your application details to make sure they are happy to lend to you. (Approvals in principle- are not worth the paper they are written on, and are not legally binding)
> 
> The original poster said that they only decided to run with First Active (who do have a terrible service record- both to brokers & on the legal/drawdown side) 2 weeks ago, and is now trying to harrass a letter of loan offer. Might I remind everyone that 2 working weeks, is 10 days- if there is any DX, postage or other delay, or indeed if a new valuation on the property is required this will all take at least 50-60% of that time, and that also asssumes no existing backlogs in administration.




Can I just say that my broker told me that since the application went to the bank it has taken 12 working days for the letter of offer to come through / issue. I was told 5-10 working days (I am aware that this is 1 - 2 full weeks) but if the banks are having a problem meeting THEIR OWN deadlines then why not say 30 days? Or 10-15 working days? 

Also I supplied every document that was asked for and valuation so there was no hold ups on my end. I have a clean credit history, never even been in over draft, always paid off loans on time and without missing any payments!


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## Yellow Belly (17 Aug 2007)

No comment was made on anyones credit history- had assumed that application was bona fide & in order.

Quoted 5-10 days & it took 12? What an terrible disaster!!!! And you know that it could have been issued within 3 days except for the fact that all the FA employees were only working half days!!!LOL! With respect First Active do have an appalling service record but can you imagine how much paper work must be worked through on each mortgage, and then multiply that by the number of mortgages taken out each year- would be easy to imagine how service levels may drop? Especially in August which is a holiday month traditionally, and institutions may have lower than normal staff levels- best service always received in Jan-March, and Sept-Nov.

I have sympathy with your situation but I am just trying to outline a better understanding on the process.


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## BK2 (17 Aug 2007)

I agree with the above. I work in a solicitors and deal with re-mortgages on a daily basis but to be honest when i meet clients and I have a first active pack in my hand, i don't say it should be a week to ten day (which is the usual time period) to drawdown I just say i will do my best but can't give a definite time frame so i suppose they dont' have the best reputation.


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