Delay after drawdown

[cian_59]

Hoping for some advice or previous experience. My solicitor drewdown my mortgage yesterday from AIB for a house we're supposed to buy tomorrow. It's a second hand home and we're FTB. Just today we've been told that there is a delay further up-chain somewhere and we won't be closing tomorrow and there is no new date.

(A) Can I send the mortgage "back" to AIB now that there has been a delay and draw down again? Will this be an easy drawdown or seen as a whole new application again?

(B) Assuming we don't send the mortgage "back" and keep it in the solicitors account. In the event the house sale eventually collapses, what happens to the mortgage? Considering we've taken a 3 year fixed rate, would I have to pay extra to break that fixed rate if sending the mortgage back now or at a later time?

(C) Would ringing AIB to ask them raise any red flags even though the funds have been received and in my solicitor's client account?

Hoping to get some perspectives and to be honest, we're just a bit lost on top of the frustration now.

 

[RedOnion]

It happens. Not often, but it does.

Here's a previous post on similar, with comment from a mortgage broker and positive outcomes for the poster:

Deal falls through after mortgage drawn down

Hi All, So the sky has fallen in!! I went sale agreed on house at the start of July. Contracts were received about 2 weeks later with a closing date of the 24th August. With agreement the closing date was pushed out a week to the 3rd September. There was an small issue with the map with land...

www.askaboutmoney.com

You need to speak with your solicitor. A standard contract will have a penalty clause written in for any delays in closing date. Rarely implemented, but the clause is there.

What you need to establish is if the closing is delayed, or if it's all fallen through now, which should inform what to do re mortgage. This all depends on the nature of the issue, so take advice from your solicitor.

Say you keep the funds for a while before returning. With AIB, there won't be a break fee unless they change their interest rates. But they will charge you daily interest. I don't think your solicitor will hold the funds for long, as they can't fulfill their undertaking to provide security to the bank.

Best of luck with it.

 

[tracer900]

I'm in your boat right now +3 weeks. Will likely have made first repayment before moving into the property. Returning the funds will incur interest payments and a fee of some description.

Solicitor hasn't been very helpful and in hindsight, should never have allowed the drawdown to happen. I'll need to consider my options in that regard too as their blasé attitude to our sale has racked us up not insignificant extra costs.

 

[cian_59]

I'm in your boat right now +3 weeks. Will likely have made first repayment before moving into the property. Returning the funds will incur interest payments and a fee of some description.

Solicitor hasn't been very helpful and in hindsight, should never have allowed the drawdown to happen. I'll need to consider my options in that regard too as their blasé attitude to our sale has racked us up not insignificant extra costs.

Sorry to hear. Just wondering what was the cause of your delay. Fingers crossed get some more information tomorrow on what the holdup is.

 

[tracer900]

Sorry to hear. Just wondering what was the cause of your delay. Fingers crossed get some more information tomorrow on what the holdup is.

Our buyers funds. We weren't informed enough at the time but our buyers mortgage is through the rebuilding Ireland home loan scheme. We've been subject to delays due to this which wouldn't have occurred to a buyer with a regular bank mortgage. In hindsight, we would not have accepted their offer had we known then what we know now.