Mortgage approved.. Then declined

Martin14

Registered User
Messages
12
Hi,

I have an employee who recently applied for mortgage. Got approved in principle, found a house, and put down a depoit.

He(and his wife) was told they could apply for up to 170k, they only need 90k, for a 100k purchase. Both would earn approx 25k. The BOI sent out a letter of offer, and he was asked to sort out house insurance, morgage protection and get an evaluation through one of the banks evaluators. He did all this with the help of his solicitor. Offer was signed, and also signed by the bank.

2 weeks later the bank comes back and says it's now been declined. He has solicitor fees to be paid and has already paid the banks evaluator, all because of the banks offer.

Hes from Romania, which maybe an issue, as he did have some of his saving sent back to Romania, but since got it sent back to his Irish a/c. Also it's been about 6 months now since he first applied and puts all savings into his normal account.

This nearly sounds unbelievable to me that the bank can act in such a manner, where does he stand in this situation, he tells me that the letter of offer had been signed by both parties and yet they can still decline????

Anything he can do in this situation???
 
Letter of offer probably had time limit of 6 months ?
You say withdrawn after 2 weeks, if Bank withdrew within time constraint of letter of offer Bank have question to answer?
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Go back to Bank (keep his cool) and request they re-review given that he assumed all was ok and was doing as Bank asked.
If still refused go through Banks un house complaints dept , and at the same time take legal advice.
At the same time try other lenders .