Query re loans being cleared before mortgage paid.

[shoppergal]

Hello,

Just looking for advice from all you wise people.

We've got mortgage approval from PTSB for 210k if we leave existing loans in place(total loans 8k) or 265k if we pay them off.

We've found a new house that we want to buy which is 240k.

We can't pay off the loans in full(we could pay off 4k) until the end of May(Hooray for SSIA'a) . The house isn't going to be ready until Septembe.

My question is: are the bank likely to give us the ok to go ahead now even though the loans won't be paid off for another 7 weeks or would they point blank refuse to issue a letter confirming the mortgage until after the loans are paid off?

Apologies for the garbled message and congratulations if you've got this far!!!

 

[sloggi]

if you submit the application on the basis that all loans will be paid off prior to draw down of mortgage, i would think the lending company would be agreeable to the higher amount!! they would issue provisional approval on that basis! that's the basis of my own application

 

[Sarah W]

The lender can make it a condition of the mortgage offer than the loan(s) be cleared prior to completion. They will want proof of this prior to drawdown in September so you should be fine.

Sarah

www.rea.ie