Can the bank change loan offer from 100% to 92% when contracts have been signed?

M

Mag2006

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Help!!!!!!!....think I am going to have a nervous breakdown. We were approved for 100% mortgage recently thru our broker & a certain bank, loan offer sent to solicitors and we signed the contracts.
Closing will not be until October so another credit check was done and an old HP loan hubbie had that was in arrears then paid off, no judgements or repossessions, this only came to light with bank now. This loan is over 5 years ago & the bank it was with have since taken over the bank we are getting mortgage with so perhaps when names went onto their system this came up??, it definatly was not on ICB. When we did our own credit check at the start we were relieved when it never came up, told broker and he said to say nothing.
Got the call from hell 10 mins ago, bank are very concerned about this & have concerns about repayments being made and have are considering changing from 100% to 92% AND mentioned a guarentor. I am horrified as firstly I have no means of getting a guarentor as I won't put this on parents shoulders AND we don't have 44k which is the 10%. We have savings of €25k, if this is touched how are we going to furnish the house. My solicitor just rang me going beserk, he is horrible anyway, big mistake using him, bad referral.
What can we do???. This is very very serious for us. Can this be done by a financial institition, can they offer one thing then change their mind??.
Going out of my mind, want to go home now, cannot concentrate on a thing. Should I be more angry with broker or bank???.
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

Can this be done by a financial institition, can they offer one thing then change their mind??.

Yes. Not nice but it can happen and obviously just has.

Should I be more angry with broker or bank???. Hubbie.

We have savings of €25k, if this is touched how are we going to furnish the house.

You may have to use it to pay for the house if Bank won't change their mind. All you can do is beg or try someone else.

mf
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

Get your mortgage from another provider so? If its not on the ICB report then there shouldnt be a problem.
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

did you get a formal loan offer for 100%, if so did you sign it and send it back?
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

Certainly not the broker or banks fault you had arrears on a loan that the bank have discovered.
yes the bank can change their mind, even withdraw the loan offer, the fact that you have signed a contract is irrevelent to the bank. as previous poster has suggested, if the loan was spotted / picked up on internally, and your certain its not on the ICB then apply asap for 100% to another bank, did your broker not make a few applications for you, or did they just apply to one lender?
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

Most lenders offer 100% so you should start applying elsewhere either direct or via your broker (he should offer to do this as a matter of course). Alternatively arrange to meet a representative of the bank who have approved you and plead your case directly. I would guess it's the fact that you did not disclose the problem loan at the outset that has caused the alarm bells to ring.

Sarah

www.rea.ie
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

The same thing happened to me a couple of months ago, old loan came up against me - but with me it was recorded on the ICB. I think your bank is just making you sweat. My broker told me to give them a good explanation as to why I missed some payments and that will good enough for the underwriters - she said they just need an explanation in black and white. I had that horrible panicky phone call but I think if you hold fast and stick to your guns in that it was over five years ago they'll back off. Otherwise change banks altogether and once it's not on ICB other banks will be happy to give you 100%.
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

"We were approved for 100% mortgage recently thru our broker & a certain bank, loan offer sent to solicitors and we signed the contracts."

I've had a couple of cases similar to this. Once our clients signed the contracts (Which are legal documents) the lenders could not withdraw the offer.

Does your broker have a good relationship with the lenders??

I would dispute this with the lenders and get some legal advice.
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

Our broker is going to another bank, he is disgusted, as other than that old loan hubbie had,we are squeaky clean. We told him all about that at the very start and he told us to get a credit check done and the ICB came back prefect, nothing on both checks apart from a perfectly repaid loan I had with AIB from 2003-2005, and that was paid back in full a year early in the end. They would give us 92% on the spot but we need 100% so we can buy something to sit on, sleep in and wash clothes with!!
Broker only went to one lender and once we got the okay from them and the 2 year fixed rate is favourable so we went with it.
Broker has phoned me again there to say we have full 100% approval from another 2 lenders and he can get the paperwork over to them today getting the nod from us, unless we want to ring the difficult lender directly. I am going to do this as I really am horrified, this loan is off the ICB as it's over 5 years ago, there were 5 month arrears on it prior to being paid off in full & that's it. I think it's ridiculous and they can feck off if they think they can dangle a carrot in front of me regarding my home for my family when everything was done above board. We both know we can easily get it elsewhere but we don't want anymore delays when it comes to closing. I am so upset though, we have signed both the contracts & the loan offer a number of weeks ago so why the hell now???. Just because their software/data system has more on it now due to it being taken over & it's carrying VERY BLOODY OLD loan details on people.

Ney001 "My broker told me to give them a good explanation as to why I missed some payments and that will good enough for the underwriters - she said they just need an explanation in black and white.- we have just done that, told the truth, simple explanation. Hubbie was swlf employed then & business went really bad so his missed payments up tp when he got a permenant job a few months later. Company was closed down in 2001 by himself as he wanted the security of a perm job, no implications as it was all done properly.

What I need to know now is will I have to get new set of contracts from builders solicitor if we change lender and will this draw it all out. Are we going to face major problems here??.
Thanks for the replies!!
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

MortgageBrkr said:
"We were approved for 100% mortgage recently thru our broker & a certain bank, loan offer sent to solicitors and we signed the contracts."

I've had a couple of cases similar to this. Once our clients signed the contracts (Which are legal documents) the lenders could not withdraw the offer.

Does your broker have a good relationship with the lenders??

I would dispute this with the lenders and get some legal advice.
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Definatley seeking legal advice on this. I am a logical & reasonable person and I cannot define how they can go ahead, give us WRITTEN LOAN APPROVAL FOR 100% LTV , let us sign legally binding contracts and then say "Oh hang on there now, think we made a MISTAKE!!!!". I am not standing for this nomatter what. Hubbie and I are marching up to their head office in about an hours time, how dare they try and screw all this up on us!. RAGING!!!!
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

MortgageBrkr said:
"We were approved for 100% mortgage recently thru our broker & a certain bank, loan offer sent to solicitors and we signed the contracts."

I've had a couple of cases similar to this. Once our clients signed the contracts (Which are legal documents) the lenders could not withdraw the offer.

Does your broker have a good relationship with the lenders??

I would dispute this with the lenders and get some legal advice.
Click to expand...

It's nothing to do with the lender whether contracts have been signed or not. If the clients situation has changed or new information has come to light the lender is entitled to amend or even withdraw the offer at any time up to cheque isse.

Sarah

www.rea.ie
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

Thats good get angry. When it happened to me I cried, then panicked then rang dad, then rang bank then posted here and then got really really mad that they were putting me through all this for something that happened years ago when I was trying to get on my feet!. Two days later it was all blown over and they acted like nothing had happened. They don't want the hassle of anybody with a financial past! god forbid they might have to do some work with them. They only want new people who never had loans etc - less risk in their eyes and less work.

Best of luck i'm sure it'll be fine
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

Mag2006 said:
Definatley seeking legal advice on this. I am a logical & reasonable person and I cannot define how they can go ahead, give us WRITTEN LOAN APPROVAL FOR 100% LTV , let us sign legally binding contracts and then say "Oh hang on there now, think we made a MISTAKE!!!!". I am not standing for this nomatter what. Hubbie and I are marching up to their head office in about an hours time, how dare they try and screw all this up on us!. RAGING!!!!
Click to expand...

The application form asks if you have "ever fallen into arrears" (or words to that effect) so if this was answered incorrectly you can hardly blame the bank. I'm pretty sure you'll get this resolved but shouting at people for what is patently your (or your husband's) error might be somewhat counterproductive.

Sarah

www.rea.ie
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

Thanks Ney001...nice to chat to someone that's been thru the same scenario. I'm still scared of loosing it all though, fecking hell this is terrifying. What sort of nasty underwriter wants to cause us this heartache. I am actually crying now so have to go.
The builders solicitors are horrible so god forbid the the fury if I have to make changes now. We were a week late signing contracts and they wanted to put the house back on the market, again this was coz the bank took ages sending loan pack to our solicitor and THEN the gobs*ite could not find it. Please don't ask me how or why!!LOL.
Gotta go and scream somewhere, this is our new home, my babies future they are messing with. I hate them.
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

Sarah

That wording also entitles a lender to check back beyond the normal 5 year ICB retention limit. If so are the lenders possibly accessing a database which is essentially an unknown ICB archive ????

Ask this lender in writing where they got this information on the hubbies HP , it may have been sourced from an unregistered database of some sort !!!!
If 'old' is less than 5 years then of course its not old and come from the ICB .
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

Sarah W said:
The application form asks if you have "ever fallen into arrears" (or words to that effect) so if this was answered incorrectly you can hardly blame the bank. I'm pretty sure you'll get this resolved but shouting at people for what is patently your (or your husband's) error might be somewhat counterproductive.

Sarah

www.rea.ie
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Sarah,

we filled all this out with broker present and he told us there was no need to tell them about the arrears as it was not on our ICB and the age of it. He said there was no way it would be picked up so why explain something that doesn't matter!!. Well it does now.
I actually think I have a right to partially blame the bank, we have healthy bank accounts etc, all the criteria required and 4 missed payments over 5 years ago means they can reduce the loan they want to give us by €44k!!. Thing is all that was owed on the loan in the end incl arrears was IEP£2,300, that was before the euro changeover even!!. GRRRR!!.
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

I personally wouldn't shout Mag2006, I know how frustrating it can be believe me, but you are nearly there. Go to bank, explain the situation, and grovel a little, be apologetic and say how happy to are/were to be going with them for your mortgage and how friends/family had recommended them. It just might work. If it doesn't, fine go with the other bank but they will probably find out anyway and then you might have the same scenario. I really do feel for you, to have this hassle so late in the game,especially when you have babies to worry about too, but it will all blow over in a few days as ney001 said. Good luck.
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

Mag2006 said:
Sarah,

we filled all this out with broker present and he told us there was no need to tell them about the arrears as it was not on our ICB and the age of it. He said there was no way it would be picked up so why explain something that doesn't matter!!. Well it does now.
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well it depends on the wording. It would be very very naughty if there was an unregistered ARCHIVE of old ICB data lying about that bank though , positively illegal in fact . Check with the data protection people on this www.dataprivacy.ie !
I actually think I have a right to partially blame the bank, we have healthy bank accounts etc, all the criteria required and 4 missed payments over 5 years ago means they can reduce the loan they want to give us by €44k!!. Thing is all that was owed on the loan in the end incl arrears was IEP£2,300, that was before the euro changeover even!!. GRRRR!!.
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You do but !

1.when was the last payment missed on this loan (years)
2. when was the loan finally cleared.(years)
3. was there a judgement of any sort or a stubbs entry ???
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

You do but !

1.when was the last payment missed on this loan (years)- March 2000(6years)
2. when was the loan finally cleared.(years)April 2000 (6 years)
3. was there a judgement of any sort or a stubbs entry ??? No, 100% certain of that, have confirmation letter from bank when it was paid off stating no liablilty to bank and no judgements were obtained.[/quote]
 
Re: Can the bank change loan offer from 100% to 92% when contracts have been signed??

Mag2006 said:
You do but !

1.when was the last payment missed on this loan (years)- March 2000(6years)
2. when was the loan finally cleared.(years)April 2000 (6 years)
3. was there a judgement of any sort or a stubbs entry ??? No, 100% certain of that, have confirmation letter from bank when it was paid off stating no liablilty to bank and no judgements were obtained.
Click to expand...
In a nutshell Mag

1. The ICB does not have these records , (they go back 5 years from when you applied) so WHO has them .

2. Unless the loan was with tTHAT bank and on THEIR system where did they get their information from ??????

It strikes me as likely that that bank has an unauthorised copy of ARCHIVED ICB DATA and that they may not have registered that with the Data Protection commissioner.

I would register a formal complaint with the data Protection people about this unauthorised database and the unauthorised use of it so that thay can bitch slap the bank ....and get you some compo off them as well.

The ICB record should not be allowed to stand against someone for life, wording or no wording, God knows how far back they go and they don't bother telling you :(

People make mistakes and after 5 years its reasonable to assume they served their time and reformed.

Of course the data WOULD have been on your ICB record as late as April 2005 or May 2005, when did you apply for approval ???
 
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