Switch possible?

B

biker

Registered User
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17
I think I know the answer, but want to confirm.
My son has a mortgage, with no credit issues, currently about 120k, with 10 years remaining.

The mortgage was part of a portfolio purchased by a fund and serviced by a local serving company.
The rate is high, 4.5%, and he would like to swtich to a lower rate.
Problem is the property is an apartment awaiting remediation work to bring fire safety standards up to scratch.
I presume a new lender would not lend until the remediation works are completed.....any thoughts appreciated!
 
The bank will want a valuation from one of a panel. If the valuer spots anything out of the ordinary such as signs on the stairway about remedial works they might mention it. Apart from that I don't see why they would refuse unless they knew about it. Having said that I'm pretty sure they have some questions and/or T&C that state you may have to reveal this.
 
elcato said:
The bank will want a valuation from one of a panel. If the valuer spots anything out of the ordinary such as signs on the stairway about remedial works they might mention it. Apart from that I don't see why they would refuse unless they knew about it. Having said that I'm pretty sure they have some questions and/or T&C that state you may have to reveal this.
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Thank you....so a valuer may reduce the market value by the cost of the remedial works, and but that would still be significantly more than the mortgage being applied for....
 
elcato said:
The bank will want a valuation from one of a panel. If the valuer spots anything out of the ordinary such as signs on the stairway about remedial works they might mention it. Apart from that I don't see why they would refuse unless they knew about it. Having said that I'm pretty sure they have some questions and/or T&C that state you may have to reveal this.
Click to expand...
Hi...just to update on this...unfortunately the solicitor would not be able to provide an undertaking re marketable value to the lender, so not likely to proceed...we are going to check with the lender if they would accept a conditional undertaking before incurring valuation and legal fees, but apparently unlikely.....
 
biker said:
Hi...just to update on this...unfortunately the solicitor would not be able to provide an undertaking re marketable value to the lender, so not likely to proceed...we are going to check with the lender if they would accept a conditional undertaking before incurring valuation and legal fees, but apparently unlikely.....
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Hi @biker,

Did you find out if the lender would accept a conditional undertaking? What did your son decide to do in the end?

Thanks
 
Paul F said:
Hi @biker,

Did you find out if the lender would accept a conditional undertaking? What did your son decide to do in the end?

Thanks
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Hi Paul,
Lender won't accept a conditional undertaking. Unfortunately, my son is stuck with the high rate until remediation work is done..which in the current climate is an unknown timeline...rock and hardplace!
 
Hi @biker,

Thanks for the update. These construction defects are causing stress and costing money for thousands of people. Another Celtic Tiger legacy.

Has your son checked what his break fee would be, with a view to switching to a better rate with his current lender?
 
Paul F said:
Hi @biker,

Thanks for the update. These construction defects are causing stress and costing money for thousands of people. Another Celtic Tiger legacy.

Has your son checked what his break fee would be, with a view to switching to a better rate with his current lender?
Click to expand...
Hi Paul,

it's not a fixed rate, it's a variable rate, it was part of the portfolio from Danske Bank that was sold. The new 'owner' has no interest in developing the business, simply running the book down. They are quite happy if you move, as they get full payment on a loan they bought at a discount. Equally if you stay, you continue paying at a high variable rate. Win/win for them.

Re the defects issue, at some stage you would imagine there would have to be some assistance forthcoming from the state, even if it was low/zero rate loans. Unfortunately in the current circumstances, probably a long way down the priority list.
I did engage with all the political parties during the election campaign, and all but one 'promised' to assist if in government...we shall see!

ta for the interest Paul...
 
It is a horrible situation. I am in the same position.
What is really upsetting is that the government allowed the sale of our performing mortgages to these vulture funds.
We originally took out our mortgages with a bank but overnight our opportunities to leverage improving LTV’s or renegotiate lower fixed or variable rates with our bank we’re taken from us..
Whilst the simple solution would be to switch, unfortunately people’s financial situations change therefore preventing this, yet the Vulture Fund is allowed to continue to gouge with very high rates whilst offering no services nor bricks and mortar facilities.
But hey, someone in government thought this was an ok way to treat people, right?
 
Eureka101 said:
It is a horrible situation. I am in the same position.
What is really upsetting is that the government allowed the sale of our performing mortgages to these vulture funds.
We originally took out our mortgages with a bank but overnight our opportunities to leverage improving LTV’s or renegotiate lower fixed or variable rates with our bank we’re taken from us..
Whilst the simple solution would be to switch, unfortunately people’s financial situations change therefore preventing this, yet the Vulture Fund is allowed to continue to gouge with very high rates whilst offering no services nor bricks and mortar facilities.
But hey, someone in government thought this was an ok way to treat people, right?
Click to expand...
Hi Eureka,

in my son's situation, Danske decided to exit Ireland, rather than a Govt enforced sale and unfortunately the buyer of the loan book was bought by a non retail-bank institution.
His real problem is that the building regulations were not adhered to by the developer, and not inspected by the appropriate government dept.
Developer still exists, but does'nt want to know. and the Govt obv still exists, and does'nt want to know!

I agree, a horrible situation for both you and my son!
 
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