Mortgage Company has changed their mind!

[N&C]

Young couple, first time buyers, we both work for the state but i am only on a temporary contract.

Initially my partner was approved for 100% mortgage but then I decided to apply also. Mortgage company said no problem seeing as my partner was already approved. This happened about 2 months ago and we set about getting our insurance, mortgage protection etc. We also took out a small loan to cover furniture etc.

House is ready and we were about to draw down money when mortgage company contacted us yesterday to say that they would only give us 95% because my contract is not permanent! If my partner stays on his own they will give him the whole lot!

With our money now tied up elsewhere and an extra loan already we feel that paying the 5% will leave us under a lot of financial strain.

We did think about going to another bank but feel that the loan we took out since our first mortgage approval will go against us.

We could just take the 100% in my partners name but this leaves me with no legal entitlement to the house.

Any suggestions?

 

[therave]

Did you speak to your solicitor and ask what the situation is re the loan in one name but the house in 2 names..is there a way around it and if you were to take the loan in the males name what would it cost to get youre name on it later.

If you have a contract with the builder how will this be impacted that there will only be one name on the house, will the contract have to be altered..

 

[bobk]

A very odd situation,

Go to a broker and get them to take over the case, they should be able to fight on your behalf to get 100% with that lender.

Otherwise apply to another bank and see what they say about the loan.
If you have to get rid of it, maybe a family member might 'gift' you the funds.

There's nothing stopping you from getting another loan out after you drawdown the mortgage, but remember that the banks offer a maximum for a reason (ie. you can't afford to repay any more if the rates rise!).

Move fast though because if you have to take it to another lender, make sure you're approved before the rate rises on the 8th of March

Good luck

 

[PM1234]

did you speak to your solicitor and ask what the situation is re the loan in one name but the house in 2 names..is there a way around it and if you were to take the loan in the males name what would it cost to get youre name on it later...

AFAIK you won't be able to have joint title ie deeds in two names and have one borrower. Lenders don't do this as it means the second person on title may not be aware that the borrower is borrowing against their joint security. It works ok the other way around ie joint borrowers sole title as long as the joint borrower signs additional documentation including the letter of offer to show they are aware that additional funds are being looked for which won't help you in this instance.

The only way around this is to have the house registered in one name only with one borrower and at a later date have it transferred into joint names which means it will cost more in legal fees.

The other alternative is to try other lenders to see if you are eligible for joint borrowers joint title.

 

[Sarah W]

It's very strange that it's taken your lender 2 months to get to this decision. The ICS are traditionally very pro state employers (well, they are the Irish Civil Service Building Society so they should be!) so it would be worthwhile talking to them either via a broker - who can also talk to all the other 100% mortgage lenders - or direct.

Sarah

www.rea.ie