LTV query

Have my mortgage with IIB. Recently (15/9/08) applied for a top up to build an extension to PPR. Rang customer services and gave details to agent. Asked for 50k top up and asked what the LTV was and was informed it was 90%. Got a call 2 ays later from an underwriter to verify data given and was asked if I would agree to close an existing credit card as part of the application (7k) and I agreed. Recieved approval in principle letter next day for 57k and indicating what documents I should submit and also that LTV was 90%.

Submitted all documents incl valuation of 570k on PPR (existing loan is 445k). Rec. call from IIB on Tue last to say application declined as their LTV is 80% and valuation v loan doesn't come below 80%. Was told that their LTV changed to 80% in July ???.

Question is - is that it. Tough luck as they have changed their LTV while my application was in the system or do I have any comeback. Have got planning permission and had paid 10k deposit to builder following conversation with underwriter. ???

In the first instance, I'd complian to IIB. Look for a manager, rather than an agent. They should have a record of giving you approval in pronciple for >80% in September. See if you can get them to change their mind as they were the ones who evidently made the mistake.

If that doesn't work, consider re-mortgaging. Given that the money is for home improvement, you should be able to get 90% elsewhere if your credit rating is good and you have the income to support the application.

i would say if you push them hard and explain exactly how things are...deposit to builder ect, the might have a change of heart.
i dont think you should have parted with 10 grand to the builder though before you knew for where you stood

Check the Sunday Business post today- Their is article to do with IIB , something to do with their parent company has taken out insurance against bad debts and are concerned about irish position of offering over 80% Plus loans-May be order from parent?

Many thanks folks for the replies. My own mindset is to follow them up. I have been a longstanding customer, perfect credit history etc. Will see what the attitude is today.

You will have a loan of nearly half a million euros so if i was a bank i would be a little concerned in the current climate that you would be able to service such a big loan.

I am assuming (because you only have 125K equity) you bought the house in the last couple of years? Again, these are the houses that any bank would look at as being most at risk to negative equity.

You must be earning way over 100k to repay this mortgage and if so you have also been heavily hit by the 2009 budget.