Can the bank change loan offer from 100% to 92% when contracts have been signed?

Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

It's an internal database they have from what broker has told me so far and they picked it up from there due to being owned now by the bank he had the loan with so the banks obviously don't delete a loan from their computer records regardless.
Legally, I am contacting my parents solicitor about this. I am not letting it go. We can go and meet bank face to face this afternoon to sort it all out out. I might have to swallow my pride and smile and them and take Roxys advice, this will save alot of other hassle on the horizon. Then,next year we will switch to another lender so we don't end up fattening up their profits too much. As irate as I am, this is very important to us and I cannot let pride get in the way of sorting this out for the sake of us as a family.
Then again, if it's all sorted I will find the where the underwriter lives and make her pay for a fortnights holiday for us to somewhere nice and relaxing to make up for the feelings I have at the moment. My heart is pounding and I feel quiet ill actually.
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

Unless the loan was with tTHAT bank and on THEIR system where did they get their information from ??????
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The OP did mention that the original personal loan which fell into arrears , was with a bank that subsequently took over the lender they are processing the mortgage through

This loan is over 5 years ago & the bank it was with have since taken over the bank we are getting mortgage with so perhaps when names went onto their system this came up??
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it is unfair however that they issued an offer and then subsequently amend the details but they are entitled to do so

It's nothing to do with the lender whether contracts have been signed or not. If the clients situation has changed or new information has come to light the lender is entitled to amend or even withdraw the offer at any time up to cheque isse.
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Sarah is correct here, a bank may withdraw or amend a loan offer at any stage up to cheque issue.
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

Then they had the information when they made the offer of 100%.

You accepted the offer and you all signed contracts on it. Its not an offer its a contract . Either its Soliciting time , make them earn their money.

but also remember that NO other bank has this information to hand so you could go elsewhere for the 100%
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

2Pack said:
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Of course the data WOULD have been on your ICB record as late as April 2005 or May 2005, when did you apply for approval ???
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We applied for approval in May this year, and it was all done & dusted and loan pack sent out to our OBNOXIOUS solicitor and we duely signed all docs with great excitement and happiness.
Little did we know what they would try a few weeks later:mad: .

We are meeting with Bank at 4pm, are we right to do this or should we just switch lenders to teach them a lesson?. Regardless of the outcome I am contacting the Data protection agency and getting to the bottom of this & hopefully I can get my own back on them for this. Might sound immature but it's a terrible thing they have done.
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

mag2006,

I can understand why you are so upset about this, but why cause yourself so much stresss over it, your broker has informed you that you have 100% offer elsewhere, Tell the original bank you are not proceeding with 100%, 92% or any % for that matter and move on to another lender.

All the best with it.
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

The data protection people would tell you if they were in breach of the spirit of the ICB rules by trawling back 6 years and by offering you 100% and then pulling the offer because they had this held over you waiting.

Make the obnoxious legal jobsworth be obnoxious to the bank for a change

Meanwhile follow Mollys advice and shift to another lender who does not have this information for the 100%
 
Its not an offer its a contract
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there is where the confusion is , its a mortgage offer , the contract that they signed was between them and the builder to purchase a property, no written contract takes place between a borrower and a mortgage lender before funds are drawn down, by returning a signed offer all the borrowers are doing is indicating to the mortgage lender that they wish to proceed with the offer and are happy with the terms and conditions.

The contract with a lender to repay funds borrowed does not come into effect until the mortgage funds have issued.
 
Would the failure to disclose the loan not give the bank the right to change/amend/withdraw the offer?
I’m sure they’d claim the contract isn’t worth the paper it’s written on due to the fact of non-disclosure should this be to their benefit? Similar to the way insurance can be rendered void if it’s found that certain details were wrong/lied about on the initial forms.
 
We didn't tell any lies, the question on the form is "any arrears/judgments/creditors agreements etc in the past 5 years" as far as I can remember and we told the truth, in the past 5 years not a question on our credit history. As originally posted, our broker was with us when we were filling it in & I questioned this part and he said a loan paid off in April 2000 is totally irrelevent in 2006!
 
Best of luck,

personally i would threaten to take up a 100% offer somewhere else while meeting with the bank people by stating that,

A. 100% is all you can afford that
B. if 92% is all that they can offer, you will have to consider another lender who has already offered a 100% mortgage, unless they are willing to reconsider.

Ask them was it an ICB check? or is it just bank policy to check their own records more than the ICB limit (5 yrs) and punish customers in this manner, as you feel you are being unjustly punished, then get your hubbie to explain what valid reason he had for missing the payments (temporary unemployment, illness, whatever it was, theres usually a legitimate reason, isnt there?)
 
As Molly & Sarah have pointed out, the paper signed by you for your 100% mortgage is NOT a legally binding contract. Up to the date of drawdown, you can pull out at any stage and go with another bank, should they offer you a more favourable interest rate etc, just as your lender can pull out based on this information which has come to light. This is what is called an even handed commercial transaction, niether bound til a certain date/occurence.

In this situation , despite what you might feel now, you have got this choice to go with another lender. Your situation could be a lot worse, given that your husband did have a credit problem.

My understanding of the Data Protection Act is that once a company is taken over by another, its data then becomes the legal property of the company (which in this case is your husbands bank) which acquired it. As far as I know the nature of the business may require access to such records to carry out the new business in a proper manner.

You do have options, so all is not lost. Best of Luck
 
Morning all, well I am much better today but still reeling from the stress upset. We have taken up an offer from another lender being Perm TSB and their turnaround time on loan offer has been exceptional & our broker has been a total diamond. We met with our original lender who said the best they would do for us was 97%. I just laughed at the stuck up unhellful hag that we dealt with. I just composed myself and told her straight that their policy is a disgrace and there is not justification in what they have done at all. How dare they pull the rug from under us like that for a loan that was 4 months in arrears & paid off in full in 2000...6 years ago and we have a perfectly understandable explanation. Then she came out with "well really Mrs. XXXX, the best we can do is lend you 97% of the purchase price & I think you are lucky to even get this far". That was it, I knew at that stage we had full approval from TSB, so I said that I wouldn't borrow €2 off them and I had typed up a letter before I arrived instructing them to cancel the whole process. I handed it to her and smiled at her and said we probably have more in the bank than she does & I believe in Karma for someone who tries to shatter a young families dreams. Crabby aul cow, sorry but she was as rude so I played her at her own game. We were so nice when we arrived & she was like a brick wall so I was not taking it.
Anyway, on the good side our loan offer (jaysus!!LOL) letter will be with our solicitor this afternoon for 100% which we will go in and sign and return. Have to get some work done now....but thanks for all the replies & advice. I still feel that it is a disgrace that if you paid off a loan which is over 5 years and not on your ICB, it should not follow you for life unless it was a massive amount or something. At the time, the car was worth IEP£35k and all that was owed was IEP£2k, he didn't even borrow the full amount for the car!
 
Ring The Bank & arrange a meeting with the Manager.
Put your case forward of how reliable you are & how it was a mistake on your hubbies part. Five years is a long time & to hold it over your hubbie to date isn't really on.

I don't know your ages so maybe you could use the card that he was young.
 
ICB searches gp back up to 7yrs. They hae 24 payment profiles back from when the last repayment was made to account. If you made last payment to loan (not last date of arrears) less than 5 yrs from application the information would be available.
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??


Tough luck. Anybody who has a history of poor repayments, no matter how far back, is likely to have old loans stoked up if you try to borrow again. Unfortunately the ease of getting non-secured credit has convinced people that its just as easy to get a mortgage. Its not.

I would say in all honesty to simply go to another lender, but say this to the current lender before you do that. They may not want to lose your business (after all, the profits from a mortgage are substantual) and may be willing to still forward the loan. If not, give up the ghost and go to another lender. Let it be a lesson well learned for you, and for others who read this.

I personally closed down all business with the 2 banks I had problems with a loan and credit card with for precisely these reasons: I felt I was better off having a perfect record with a different bank than ending up having the old stuff raked up years down the line when it suited the bank. In fairness they are quite entitled to look at your past history with them and make judgements based on that. Its a luxury that only the banks that you bank with can do, so if there are problems you are better off totally withdrawing your business from them permanently.
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??


Would suggest that since they will lose thousands of euros in lost revenue from interest and charges etc, your best form of "revenge" is simply to go to one of the the other lenders who are willing to give 100% and close down ALL accounts etc. Why hand over your hard earned cash to a bank who won't give you what you want if there are other banks who will. The lost revenue from you is a far better and more subtle way to express your dissatisfaction.
 
AFAIK banks are also suposed to delete any historic info from a file after a certain lenght of time...ths is under the data protection act, they may have breeched it by using out of date information in making their decision.
 
As previously posted we have gone to another lender and severed all ties with the original lender who started all this on us so we are happy now. I have to disagree with anyone who has to "tough luck" attitude. It's stated that the ICB goes back 5 years, so we are clear. What about other people that build up debts and seem to have no problem getting mortgages, my sil is a prime example and I nearly got sick when she got 100% no problem for €300k & put it this way, 6 times her salary would not even be half €300k and she has been in so much trouble with banks. Unreal!!. We have an excellent relationship with our own bank, find them really good unfortunatly they are not doing 100% mortgages yet!. Don't think they will either.
The ICB only have 5 years financial info on anyone. I know this for a fact as I worked in the bank for a few years and we could never access anymore than 5 years credit history. Our credit search is spotless and it's a terrible injustice that the internal records caused this on a small loan that we never even think about anymore. The lesson to be learned here is beware or don't make a mistake in life as it follows forever nomatter what we all think!. It's a happy ending anyway thank god & thanks for all the support and advice here guys!. As always you are diamonds!!
 
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