Drawdown problem/Offer withdrawn

[Hansi]

I had a firm 5 year fixed mortgage offer from First Active and signed off on contracts/loan forms two weeks ago with my solicitor. However, due to incompetence/delays on part of builder's solicitors in returning basic forms (such as block insurance) the mortgage will not be drawn down by a deadline FA HQ seems to have imposed of this Friday for their listed 5 year rate. FA insisting all forms had to be in by Monday of this week as they take 3-4 days to process loans (this was not communicated to me officially by the Bank at any stage, just found out in passing). While I would be happy to withdrawn from sale, I cannot as I have paid a largish 10% deposit and will lose it. I am now stuck looking for another mortgage offer and will be penalised to the tune of €300 per month (for someone else's incompetence) and may not even qualify for the same loan amount. Any advice welcome,

 

[ClubMan]

However, due to incompetence/delays on part of builder's solicitors in returning basic forms (such as block insurance) the mortgage will not be drawn down by a deadline FA HQ seems to have imposed

Has your solicitor advised on whether or not the vendor can be penalised in this case?

of this Friday for their listed 5 year rate. FA insisting all forms had to be in by Monday of this week as they take 3-4 days to process loans (this was not communicated to me officially by the Bank at any stage, just found out in passing).

Was it not in the terms & conditions of the mortgage offer?

I am now stuck looking for another mortgage offer and will be penalised to the tune of €300 per month (for someone else's incompetence) and may not even qualify for the same loan amount. Any advice welcome,

What is costing you €300 p.m.?

 

[Hansi]

The additional €300 refers to is the approximate increase in mortgage repayments per month due to increased rates (now 5.99% as opposed to 4.95% offer). Assuming of course I will qualify for the same mortgage amount.

I fear I will not be offered the same amount (the extra would really stretch me) and then am in a real quandry. Have paid large deposit but may no longer qualify for full mortgage, so cannot close deal. Do I then just lose my deposit. Is there any chance in getting full deposit back in this case? It seems that there is a large asymmetry in the process. Contracts were signed in reasonable faith that vendor's solicitors would act competently and in a timely fashion. I lose out through no fault on my part but rather through indifference of vendor's lawyers.

My own solicitor seems to have taken some oath of allegiance to his fellow lawyers and claims I am bound.

 

[ClubMan]

Do I then just lose my deposit. Is there any chance in getting full deposit back in this case?

If you do decide to pull out then you should certainly try to get some or all of it back. The worst (and probably the most likely thing) that can happen is that you can't. Obviously you will do this via your solicitor.

It seems that there is a large asymmetry in the process.

If you mean in relation to contracts governing purchases by individuals from developers then you are probably correct. But then you should have read and understood and/or had your solicitor explain all aspects of the contract before signing it so stuff like this should not really be coming as a surprise.

My own solicitor seems to have taken some oath of allegiance to his fellow lawyers and claims I am bound.

Sounds like you don't have much respect for your solicitor which begs a while raft of other questions. But if he says this then perhaps he is simply right?

 

[Madangan]

My own solicitor seems to have taken some oath of allegiance to his fellow lawyers and claims I am bound.

So your solicitor refusing to tell you what you want to hear must mean that your solicitor is in cohoots with the builders!!! A little maturity on your part would go a long way! Your solicitor is correct.