Problems drawing down mortgage?

Hi All,

I am currently building a house, and will be requesting the first stage of our mortgage next week. We have a mortgage approved with AIB.

I heard today that our building contractor has stopped working on two other houses as the people involved were experiencing difficulties with their mortgage, and couldn't get the money from the bank to pay. I don't know which banks these people were using.

This has worried me, and I'm wondering has anyone else experienced problems drawing down money, or even better has success drawing down money recently? Even better if it's related to AIB!

I drew down my second last stage payment a couple of weeks ago from KBC (IIB Homeloans).

This was my 4th stage payment, I had the first 3 payments within 2 weeks of them receiving the Engineers report, my last stage payment I had to wait 6 weeks !!!!

If there are problems in drawing down stage payments it is because the paper work is not in order. It is not rocket science- when you request a stage payment the bank check that all documents are in that were requested and all insurances are in place. You can ring them and ask them if anything is outstandng that is preventing cheque issue- they will tell you exactly what, if anything, is outstanding. Generally the first stage payment is the hardest to get because at that point you may not have your insurances etc in place. After that it is usually just the engineers stage payment report and for some banks your solicitor must also send in a cheque request. If you keep on top of things by staying in contact with the bank, your engineer and solicitor there should be no problem.

Thanks,

Everything should be order for us. We have all insurance in place, and last time i spoke to them there was no outstanding documentation. They said all we have to do is send in our stage payment request.

So fingers crossed everything will be fine.

hi, approved mortgage and full planning got.. ready to start site clearence and to put foundations in but was wondering is there any way of drawing down first stage payment before i carry out this work or do you have to carry out this work first??

Your engineer/architect has to submit an interim certificate to say how far along the project you are. I know for AIB there are four stages he can submit this at:

Construction has reached the following stage (tick the appropriate box)
1. Foundations​

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2. Wall Plate Level​

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3. Roof Level​

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4. Completion

Only when this has been submitted, can you request a stage payment. So i don't think it's possible to request a stage payment until your architect has sent in a cet saying foundations are complete, but you should check this out with your bank/broker.