Drawdown less than mortgage approved for

M

Madilla

Registered User
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I applied to NIB for a mortgage which just as a matter of note took them three months to process but thats another story. Anyway I now need 20k less than the approved amount. In the branch they have told me that I cannot drawdown less than approved and the only way around this is to start the application process again. Can this be correct?
 
Seems very unusual that they need a whole new application. It doesn't make sense when you're reducing rather than increasing the amount required. Would suggest talking to someone else in the branch.
 
Years back I was approved for a certain figure with EBS and then decided to take less and there was no hassle about changing the loan application before draw down without going through a whole reapplication process. Why not try another more cooperative lender if NIB prove to be hassle?
 
Although NIB are the cheapest I really do feel like changing but the problem is that I need to draw down the money in the next week or two so I'm kinda stuck. It seems the only option is to just immediately repay the amount I don't need.I spoke to the HO and they advised this was correct.
 
Or, if time is of the essence and you can't be bothered re-applying with NIB or elsewhere, can you draw down the full amount and repay €20k straight away?

I have to say that I am surprised that you are forced to draw down the full amount, but there you go.
 
If you have opted for a fixed rate mortgage there may be a penalty for repaying that 20k.
 
Advise them you require an amended loan offer. You do not need to go through the whole process again.

Call them and ask them to send you and your solicitor out a new offer, go to your sols - sign it and send it back. Its done on a daily basis all across the board it really isnt a big deal.
 
I have phoned both the HO mortgage dept and spoke to the advisor in the branch only to be told that the only way this can be done is by reapplying but I'll try again. Would you have any idea how long this might take as I've already signed all the paperwork with the solicitor and now just waiting for deeds to be released from my existing mortgage provider.
 
Ask them to fax your offer to the solicitors office. As long as you return it with your original signature (s) it should be fine.

Regarding a timeframe to get a new letter of offer its hard to say if it took 3 months to get the original. Would think that if amending your offer it could be done within 24 hours.

Would think that drawing the full amount and paying back the excess immediately would be the way to go timewise.
 
I'll try the branch advisor again and see about an amended offer. Failing any progress I'll just pay off the excess as soon as I drawdown the fund.Thks for all the suggestions
 
CCOVICH said:
Or, if time is of the essence and you can't be bothered re-applying with NIB or elsewhere, can you draw down the full amount and repay €20k straight away?
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A (minor) issue with this is that you will be paying mortgage protection life assurance premiums based on the original higher capital sum. Probably marginal but then again an expense that you can do without.
 

Sorry this is incorrect all changes to a loan off have to go back to the underwriter, so "back in the Q". Depending on instutation days or weeks.Suggest you drawdown and make lump sum payment, even if it cost you a couple of euro in mortgage protection, which can be reduced later.
 
Gav2 said:
Suggest you drawdown and make lump sum payment, even if it cost you a couple of euro in mortgage protection, which can be reduced later.
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This depends on the type of life policy taken out. If you have taken basic mortgage protection it can only be reduced if within the (usually) 30 days cooling off period. Otherwise its a whole new policy.
 
I suspect Gav2 was referring to replacing the original MPLA policy with a cheaper one if possible rather than amending the original.
 
This happened to me, and I drew down the full amount and paid back a lumpsum immediately.
 
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