Pull out of mortgage after signing contracts

[dunner]

Hi guys,

Hoping for some advice.
We signed our 95% mortgage with our lender about 4 months ago. Due to various delays with the house we still have not closed.

However, we've come into a bit of extra money and should be able to afford a 92% mortgage with a much small interest rate.

I'd like to know if it's possible for us to pull out of the mortgage with our current lender and move to a new lender?

Any advise appreciated.

 

[ClubMan]

What did your solicitor say?

 

[Molly]

Yes you can, you can pull out of a mortgage offer anytime prior to drawdown.

You could ask you mortgage lender for a new offer of 92% or go else where but you will have to go through the whole application process again and possibly pay another valaution fee.

 

[Guest107]

a new lender could feel you pulled the money out of a credit union so you gets no credit for it anyway. Is it a genuine windfall and can you prove that !

 

[CCOVICH]

To save hassle, would you be better off staying 'as is' for the first year and then switching?

Any glitches at this stage could jepordise closing, increase stress levels etc.

 

[Sarah W]

As long as you've got time (3/4 weeks to be safe) you can switch mortgage providers or get a revised offer from your current lender.

Sarah

www.rea.ie

 

[pupella]

Re: Anyone know anything about 'Flipping'

Hi There!

Ive just put down my final deposit for a duplex in D.9 and signed contracts. The house will not be built for another 18mths but i know i will be working part-time at that stage i.e on 170pw and would not qualify for 260K in 2 yrs althought today i do and i have loan offer now but its due for review every 6mths..is this correct?

I am not considering flipping, could someone let me know whats exactly involved?? Do i need permission from the builder at this stage?? what costs are involved.

Thanks Guys

 

[CCOVICH]

Re: Anyone know anything about 'Flipping'

Hi There!

Ive just put down my final deposit for a duplex in D.9 and signed contracts. The house will not be built for another 18mths but i know i will be working part-time at that stage i.e on 170pw and would not qualify for 260K in 2 yrs althought today i do and i have loan offer now but its due for review every 6mths..is this correct?

Yes, sounds correct

I am not considering flipping, could someone let me know whats exactly involved?? Do i need permission from the builder at this stage?? what costs are involved.

All covered here.

 

[phoenix_n]

Re: Anyone know anything about 'Flipping'

Ive just put down my final deposit for a duplex in D.9 and signed contracts. The house will not be built for another 18mths but i know i will be working part-time at that stage i.e on 170pw and would not qualify for 260K in 2 yrs althought today i do and i have loan offer now but its due for review every 6mths..is this correct?

Am in correct in saying that even if you use say 1000euros of your mortgage for the contract deposit then you have drawn down part of your mortgage and so even if the property is not ready for 18 months you already are paying off your mortgage.You will not need to re-negotiate in 18 months time. This would enable you to fix your rates now if going fixed.

 

[Hel_n]

Re: Anyone know anything about 'Flipping'

Hi There!

Ive just put down my final deposit for a duplex in D.9 and signed contracts. The house will not be built for another 18mths but i know i will be working part-time at that stage i.e on 170pw and would not qualify for 260K in 2 yrs althought today i do and i have loan offer now but its due for review every 6mths..is this correct?

I am not considering flipping, could someone let me know whats exactly involved?? Do i need permission from the builder at this stage?? what costs are involved.

Thanks Guys

If you are not considering flipping, what are you doing? As this is a new property, i.e. it is currently being built, your loan offer may last for 12 months as opposed to 6. That is beside the point though, as by the time the house is built you won't be able to buy it because your earnings won't service the loan. Why would you pay a deposit to secure a house you know you won't be able to afford, but that yoou don't intend flipping either???

 

[Hel_n]

Re: Anyone know anything about 'Flipping'

Am in correct in saying that even if you use say 1000euros of your mortgage for the contract deposit then you have drawn down part of your mortgage and so even if the property is not ready for 18 months you already are paying off your mortgage.You will not need to re-negotiate in 18 months time. This would enable you to fix your rates now if going fixed.

Yes Phoenix you are correct in saying this. If this is what pupella is planning on doing they need to consider this very carefully. Could they afford a 2% hike in interest rates earning just €170 pw?

 

[phoenix_n]

Re: Anyone know anything about 'Flipping'

Agreed. But if he could afford the fixed rates then he should be fine.

I have the cash for my deposit and prob will draw down 1000 off the mortgage so that in case the build got delayed i dont have to re-apply or anything. Is there any disadvantages? The only one that i can think of is that say i avail of discounted 1st year then i am using up that year on 1000 rather than the whole mortgage later the year.

Yes Phoenix you are correct in saying this. If this is what pupella is planning on doing they need to consider this very carefully. Could they afford a 2% hike in interest rates earning just €170 pw?

 

[Sarah W]

Re: Anyone know anything about 'Flipping'

Hi There!

Ive just put down my final deposit for a duplex in D.9 and signed contracts. The house will not be built for another 18mths but i know i will be working part-time at that stage i.e on 170pw and would not qualify for 260K in 2 yrs althought today i do and i have loan offer now but its due for review every 6mths..is this correct?

I am not considering flipping, could someone let me know whats exactly involved?? Do i need permission from the builder at this stage?? what costs are involved.

Thanks Guys

You are taking a huge risk. If the lender discovers your change of circumstances (but asking for updated bank statements and payslips closer to the closing) the mortgage offer will be withdrawn and you will lose your deposit. Why on earth are you buying a property that, by your own admission, you will not be able to afford the mortgage repayments on???

Sarah

www.rea.ie

 

[Guest107]

Re: Anyone know anything about 'Flipping'

Why on earth are you buying a property that, by your own admission, you will not be able to afford the mortgage repayments on???

That would be half the posters on this board recently , to my mind anyway