Mortgage offer being reassessed due to covid19

Hi, I feel like I am getting the runaround from BOI at the moment.

I remortgaged in Dec to release 50k to build a fairly big extension to my family home. We also put 60k cash up front.

Cash all spent and at the end of March started the process of drawing down the mortgage. Every time I sent of paperwork I was asked for something else, and this week things have taken a bad turn when I eventually got confirmation that all the paperwork in order but that my original BOI mortgage advisor should have told me that all existing offers are being re-examined to ensure that they are still viable!

I am still within my 6 month approval/loan offer period but have been asked to resend all the original paperwork to assess my income, ability to pay, property valuation etc.

I feel that unless there are substantial changes to my circumstances they original loan offer period should stay and that I should not have to reapply.....bank say it’s nothing personal but all offers are being reassessed! To me it is personal as there is a chance now that they won’t honour the original loan offer cause house values may have fallen and I am taking 1/2 day unpaid leave cause of child care issues etc due to covid 19.

I feel they are running down the clock until my 6 month loan offer period has expired.

I should say I rang end of March asking if c19 would impact as building work stopped and I was told no, should be no issues and with self build mortgages delays happen and bank just extend the offer period in these situations.

Am I being unreasonable to expect to drawdown the mortgage under the existing arrangements?

Anyone else in the same boat?

Mortgage is not actually too big.

Have you checked with credit union. They give mortgages and very competitive.

mHas your repayment potential changed due to covid etc ?

cmalone said:

Has your repayment potential changed due to covid etc ?

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Snork Maiden said:

I am taking 1/2 day unpaid leave cause of child care issues etc due to covid 19.

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"Am I being unreasonable to expect to drawdown the mortgage under the existing arrangements? "

Yes- I'm afraid so. The whole landscape has changed.

mf

Snork Maiden said:

I feel they are running down the clock until my 6 month loan offer period has expired.

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Was it approval in principle (aIP) you had rather than a formal loan offer signed by both parties? AIPs are generally valid for 6 months. Part of the principal is that circumstances do not change during that time. Unless both parties have signed the letter of offer, they are not in any way obliged to proceed with issuing the loan.

Snork Maiden said:

To me it is personal as there is a chance now that they won’t honour the original loan offer cause house values may have fallen and I am taking 1/2 day unpaid leave cause of child care issues etc due to covid 19.

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The unpaid leave is a material change in your circumstances, BoI and all banks would factor that in to calculating risk & affordability.

Leo said:

Unless both parties have signed the letter of offer, they are not in any way obliged to proceed with issuing the loan.

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Even with countersigned loan offers, there's always a condition that a material change in financial circumstances allows the bank to withdraw the offer.

RedOnion said:

Even with countersigned loan offers, there's always a condition that a material change in financial circumstances allows the bank to withdraw the offer.

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Yes I have a signed letter of offer.

And yes while I agree unpaid leave has changed my take home pay it’s voluntary, at my discretion.

I can return to full time anytime I want and it’s only 3 hrs and I would say it’s not material and only for their repsonsr to c19 they would not even know!

Surely parents take unpaid leave many times during the lifetime of a mortgage without it being a material financial issue.

Anybody going thru the same and have you any help in how to put my case to the bank..... I have a half built extension that may never get finished, all my cash was put in first (per bank condition) and the extension isn’t water tight yet!

I beleive they are using a sweeping to repsond to c19 and while others have availed of mortgage breaks etc I have never missed or accepted a break and am now in a mess!

Rant over

When did the unpaid leave start ? If it as in April you can send in statements till mid April and hopefully your wage has not changed. If it's just once on the statement they may not notice. If they ask just tell them you took unpaid leave at the start of covid to get you home office in order and settled and you are going back full time again from now.

elcato said:

When did the unpaid leave start ? If it as in April you can send in statements till mid April and hopefully your wage has not changed. If it's just once on the statement they may not notice. If they ask just tell them you took unpaid leave at the start of covid to get you home office in order and settled and you are going back full time again from now.

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It started in May, and I only did it cause with the extension my available use of the house is limited and “hiding” from my toddler for 40 hours while o worked from home was getting tough, plus my partner also trying to work from home we split the day and it made sense to cut a couple of hours.....I’m saving a fortune on childcare and commuting to work but they not interested in that!

They asked for mar apr& May payslips I was honest and told them May would be slightly down.

I should have kept shut!

Snork Maiden said:

They asked for mar apr& May payslips I was honest and told them May would be slightly down.

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Yes, but you have also given a reason for the anomaly.