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Mortgage Drawdown: Helping you move from Sale Agreed to Sold

23 October 2020


That moment when you actually find the perfect home for you, can be a mixture of excitement and trepidation. This is it, the dream house but how do you make it a reality? Well we’re here to help you go from “Sale Agreed” to “Sold” and explain everything you need to know along the way. We’ll explain the different steps you need to take, the role of your solicitor and can even help you organise home and life insurance, so know that we’re here to support you at every stage of your journey. To help you get your head around the process, we’ve outlined everything you’ll need to know to move from “Sale Agreed” to “Sold”, and also how we can help you even when you move in with our mortgage cashback offer and flexible mortgage repayment options. So if you’re ready to take that next step, book an appointment to come in and talk to us today to start your journey home.

Valuations & Surveys

When you’ve gone Sale Agreed on your preferred home, you can let us know and we will work with you to get your new home valued by a Property Valuer. This valuation is for your own financial protection and is required for your mortgage application to ensure the house is worth what you are paying for it.

While it’s not a banking requirement, it’s also a good idea to have a professional carry out a structural survey of the property before committing to the purchase as this will give you a more in-depth understanding of the structural state of the house and any repairs that need to be taken into account. Remember, the seller is under no obligation to tell you about any defects so it’s important to do your homework and ensure you’ve got all the information you need.

Solicitor and Insurance

At this stage you’ll also need to find yourself a solicitor, you could ask a friend or family member to recommend someone they’ve used before and trust. We will issue your solicitor with all the loan information you need to complete the purchase. Your solicitor will go through the contracts with you, explain what you need to sign and any extra documentation required from a legal standpoint. They can also work with the seller’s solicitor on your behalf to organise any requirements you may have, for example if it’s a fixer upper and you want the house completely cleared out before you buy.

You will also need to arrange Life Insurance and Home Insurance, we can help you with this and connect you with our insurance partners or you can obtain a policy from another provider if you prefer. Ask around your family and friends to see if they’ve any learnings to share with you too. Again this is for your own financial protection to ensure your house is covered and you’re covered should anything happen.

Drawdown

Once all the contracts are signed, and you’ve organised your home and life insurance, your solicitor will agree a completion date with the house seller and arrange the transfer of funds and collection of the keys to your new home. This is where your dream home becomes a reality so take some time to appreciate how far you’ve come and don’t forget to get a photo of yourself on moving day, you’ll remember this moment for years to come.

Last Minute Costs to Remember

Stamp duty

Stamp duty of 1% applies to properties up to €1m, and it’s 2% on anything above €1m. To take a real world example, on a property going for €350,000, you’d need to factor in saving €3,500 to cover this cost.

Legal and solicitors’ fees

Many solicitors charge a percentage amount (normally around 1% of the mortgage) to look after the legal aspects of buying a house. Get your solicitor on a mate’s recommendation – and be choosy. You’ll need them as your failsafe sidekick when it comes to contract time.

Structural surveys

Before committing to the purchase, it’s a good idea to have a professional carry out a structural survey of the property. A seller is under no obligation to tell you about any defects. Your bank will need a valuation for the mortgage application, but a survey will be more in-depth and tell you everything you need to know about every nook and cranny of the gaff. That’s need to know info!

Insurance

Banks will generally require you to take out mortgage protection insurance (a type of life insurance) and in some cases building insurance when getting a mortgage to buy your home. Don’t forget to tot that up when you’re adding your figures together.

Losing out at the last minute

While you’ll hopefully get to drawdown without a hitch, unfortunately going Sale Agreed doesn’t always mean you’re home and dry, so try to rein in your spending on new furniture and appliances ahead of getting the keys where possible.  It’s important to remember that this is just one more step in the process, and there can still be a wait involved. You may have paid your booking deposit, but the agreement is not legally binding until the contract is signed. Your booking deposit is fully refundable at this point if either party pulls out of the sale. There are many reasons house sales can fall through such as;

Valuation Issues

If the Property Valuer doesn’t agree that the house is worth what the buyer is asking, there can be difficulties. This can be frustrating, but it’s for your own financial protection, and your bank will help you as much as possible. Hopefully the seller is open to negotiation on price, and the sale can go ahead.

The survey identifies some problems

The survey – which is done on your behalf and looks at the condition of the likes of the roof, walls, windows, attic and potential issues such as access to drains – may throw up some unexpected work that needs to be done and you have not budgeted for. You may need to ask the seller to do the work before the sale, or reduce the price so you can afford to do it yourself. In some cases, such as the discovery of major structural problems, you may need to pull out of the sale altogether.

Cold feet

The buyer or seller may simply change their minds. Again, before the contracts are signed this is legally OK.

Mortgage Cashback

Finding your dream house is only the first step in making it your home. To help you get started putting your own stamp on the place, we offer cashback at drawdown as part of our mortgage offer, so you’ll get 2% of your mortgage value back in cash to help you make the place your own. For example, if you take out a €300,000 mortgage you’ll get €6,000 back as cash. To receive this 2% cashback you must have received your full Letter of Approval on or before 31 December 2020. This 2% cashback offer is available to both fixed and variable rate customers, so you can choose which suits you best. You also don’t need to have a permanent tsb current account to avail of this. When you drawdown your mortgage, the cashback is paid into your mortgage paying account within 40 working days so you’ll have some time to figure out what’s best to spend it on and what you really need. So whether you’ve already picked out your dream couch or have your eye on that flat screen TV, you’ll have your mortgage cashback in your back pocket to get you started.

Flexible Repayment Options

You never really know what’s around the corner, so it’s helpful to have some flexibility if your circumstances change. That’s why we offer three unique flexible mortgage repayment options for you to consider throughout the lifetime of your mortgage to help give you the flexibility you need.

Payment holiday options

  • Underpayment Option: allows you to reduce your mortgage repayments if you’ve previously overpaid.
  • ‘Skip Months’ Payment Holidays: lets you choose up to two months a year where you don’t pay your mortgage repayments. For the remaining months, your monthly repayment will be increased. This can be handy if you know you have some big expenses coming up at one point of the year to give you that flexibility and comfort.

Overpayment options

  • Lump-Sum Payment: this can be made from your savings, investments, or funds you’ve managed to build up over time which can reduce the amount you owe.
  • Regular Overpayments: you can choose to make regular overpayments (of a nominated amount) on your mortgage if you happen to have some extra budget for a few months.

Payment date option

Preferred Payment Date: you can decide the date of the month you want payments to be made, this can be handy as you can work it around your payday and ensure it doesn’t clash with other bills you may have.

Wherever you are on your home buying journey we’re here to support you along the way so book an appointment to start your journey home with us today or find out more over on our Mortgage Section on our website.

Offer available to new applicants who receive full letter of approval within the qualifying period. Excludes tracker, buy-to-let, negative equity and applicants refinancing an existing permanent tsb mortgage. 2% cashback at drawdown is paid into the customer’s mortgage paying account within 40 working days of mortgage drawdown. The qualifying period (11 January 2016 until 31 December 2020) may be extended as permanent tsb decides. Certain flexible mortgage repayment options can only be used one at a time and may result in additional interest costs over the term of the loan. Full details available on permanenttsb.ie, in branch or over the phone. Home Insurance options are arranged by permanent tsb p.l.c and underwritten by Allianz p.l.c. permanent tsb is appointed as a Single Agency Intermediary of Allianz p.l.c. for Home Insurance. Allianz p.l.c. (trading as Allianz) is regulated by the Central Bank of Ireland.

permanent tsb are a tied assurance agent of Irish Life Assurance plc. Irish Life Assurance plc is regulated by the Central Bank of Ireland.

Product eligibility criteria applies. Lending criteria, terms and conditions apply. Security and Insurance required. permanent tsb p.l.c is regulated by the Central Bank of Ireland.

The content of this blog does not constitute advice and is for general information purposes only. Readers should always seek professional advice before relying on anything stated in the blog. Some of the links above bring you to external websites. Your use of an external website is subject to the terms of that site


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