Hi Folks,
I am in the process of switching mortgages for the first time (from BOI to AIB). I have a question about the sum of money which is (yet) to be drawn down by my solicitor from AIB to pay off the mortgage with BOI.
Let's say in Jan 2017 I owe BOI 200k and my mortgage repayment to BOI is 1k per month.
- In Jan 2017, AIB send me a Letter of Loan Offer with a draw down figure of 200K to cover the re-mortgage. I then work with the solicitor over the next 2 months to switch the mortgage (it may only take 1 month but let's assume it takes 2 months).
- In March 2017, the balance on my mortgage with BOI is now 198.5K (since I paid off 1K in Jan and 1K in Feb and lets assume e500 was for interest: 1K + 1K - 0.5k = -1.5K off mortgage balance).
- In March 2017, my mortgage then transfers to AIB.
My questions are are as follows:
- Does the solicitor draw down 200K and pay BOI 198.5K and then give me the balance of 1.5K?
- Does the solicitor draw down 200K and use the 1.5K to cover part/all of their fees etc?
- Does the solicitor only draw down 198.5K (i.e. exactly what is needed on the "day of the switch"), leaving me to start with a mortgage balance of 198.5k with AIB?
Appreciate if anyone who has made the switch can help clarify.
Thanks,
tea4one.
I am in the process of switching mortgages for the first time (from BOI to AIB). I have a question about the sum of money which is (yet) to be drawn down by my solicitor from AIB to pay off the mortgage with BOI.
Let's say in Jan 2017 I owe BOI 200k and my mortgage repayment to BOI is 1k per month.
- In Jan 2017, AIB send me a Letter of Loan Offer with a draw down figure of 200K to cover the re-mortgage. I then work with the solicitor over the next 2 months to switch the mortgage (it may only take 1 month but let's assume it takes 2 months).
- In March 2017, the balance on my mortgage with BOI is now 198.5K (since I paid off 1K in Jan and 1K in Feb and lets assume e500 was for interest: 1K + 1K - 0.5k = -1.5K off mortgage balance).
- In March 2017, my mortgage then transfers to AIB.
My questions are are as follows:
- Does the solicitor draw down 200K and pay BOI 198.5K and then give me the balance of 1.5K?
- Does the solicitor draw down 200K and use the 1.5K to cover part/all of their fees etc?
- Does the solicitor only draw down 198.5K (i.e. exactly what is needed on the "day of the switch"), leaving me to start with a mortgage balance of 198.5k with AIB?
Appreciate if anyone who has made the switch can help clarify.
Thanks,
tea4one.