Mortgage rate when drawing down

[simon333]

Hey,

when I applied for a mortgage at AIB about a month ago, their advertised rates were must about to increase. The bank told (me referring to the issuing of my mortgage pack):

I'm 99% sure that we got you in on the old rate.

They even called a couple of people to make sure that I got the older rate.

Fast forward a couple of weeks, and we have the mortgage pack. They've stated that the rate will be fixed at the rate on the date of drawdown.

So the "you got a mortgage pack referring to the old rate" doesn't mean much?

 

[ClubMan]

The terms and conditions of the loan agreement undoubtedly state that the rate is subject to change up to draw down. Verbal assurances to the contrary are not worth the paper they are written on.

 

[djsim]

I find that very harsh indeed.

I am also in the process of drawing down my mortgage. I am going with NIB and they even rang me last week to say that since I applied before the bank rates were going up they would keep me at the lower rate, good on them I say.
(Of course that was before the ECB raised there rates on Monday)

Ask AIB to see if there is anything that they can do for you.

 

[simon333]

Thanks for replies.

My solicitor sent them our signed acceptance of their letter of offer, along with a letter saying that we accept if the rate is secured.

But it was AIB (the same person as quoted) called me back saying basically they were not accepting our acceptance, that the rate applied would be that on date of draw down... :mad:

 

[QED]

Something similar happened to me. At around Christmas '07, we signed up for 5 year fixed rate mortgage to be drawn down over stages as we had bought 'off the plans'.

The build was delayed so it was around 15 months before we made the final drawdown. We got a mortgage statement towards the end of this period before final drawdown and I noticed that we were paying a higher rate than agreed. I went back to our Broker and she explained that is was the variable rate until the final drawdown and then the five year fixed period would commence. This came as a bit of a surprise to me even though I have to admit that it was in the small print.

The bank were insistent that the rate to be fixed at was the rate at the date of final drawdown.

 

[ClubMan]

I find that very harsh indeed.

You find what harsh? The terms & conditions of most if not all loan offers will include a clause in which the lender reserves the right to alter the rate before drawdown. If you don't like it then get your solicitor to negotiate different terms & conditions. I you manage to do this then please post back! If we were in a climate of falling interest rates and more certain economic outlook then the rate at drawdown could well be lower and people would hardly be moaning about that.

 

[simon333]

If we were in a climate of falling interest rates and more certain economic outlook then the rate at drawdown could well be lower and people would hardly be moaning about that.

I fully agree with you on that one. But, just in my case, I was lead to believe that getting the rate offered in the offer letter actually meant something beneficial to me.

 

[ClubMan]

Yes - but only verbally. If you are dissatisfied then make a formal complaint to the prospective lender and take it to the Financial Services Ombudsman if necessary but I doubt that you have any come back.