Bank of Ireland Undertaking for Bridging Loan

Bank of Ireland has a standard form of undertaking for use by solicitors acting for Bank of Ireland borrowers who are taking out a bridging loan to fund the deposit in cases where the borrower will be getting a 100% mortgage from the bank. Practitioners should note that Bank of Ireland has agreed that paragraph 2 of this standard undertaking should read as follows:

“In the event that my/our client(s) decide not to proceed with the purchase of the property, or if the purchase of the property does not proceed for any reason, prior to the exchange of contracts, to return the entire proceeds of the personal loan directly to Bank of Ireland, [name of branch]. In the event that my/our clients decide not to proceed with the purchase of the property after the exchange of contracts, and the contract deposit is not forfeited but is returned to my firm, to return the entire proceeds of the personal loan directly to Bank of Ireland, [name of branch].”

Bank of Ireland has also agreed to print an endorsement on the face of this undertaking that facilitates the signature of an irrevocable client authority to the granting of the undertaking to the bank by the solicitor.  Earlier versions of the above form of undertaking should no longer be used.