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  • FIRST POST
    • SheilaTheKat
    • By SheilaTheKat 15th Jun 17, 2:02 PM
    • 3Posts
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    SheilaTheKat
    Negotiating the best price for my Property.. Do I need to let the bank know?
    • #1
    • 15th Jun 17, 2:02 PM
    Negotiating the best price for my Property.. Do I need to let the bank know? 15th Jun 17 at 2:02 PM
    Hi there!

    I`m a first time buyer in the process of buying a property. After I had a Valuation done on the property some friends advised me to re-negotiate the offer I first put in, which I did. The seller accepted a reduced offer and I informed my solicitor of the new offer I had made. My solicitor then told me I need to let the bank know in order to get a new mortgage offer. I was told by several people however that I don`t have to do that and that the money I got 'off' was to be used for repairs highlighted in the Valuation report.

    Has anyone dealt with this situation recently and can shed some light on what I have to do. I don`t want the bank to give me problems later on, but I also need the money to deal with the repairs needed on the property.
Page 1
    • Pixie5740
    • By Pixie5740 15th Jun 17, 2:04 PM
    • 11,095 Posts
    • 15,359 Thanks
    Pixie5740
    • #2
    • 15th Jun 17, 2:04 PM
    • #2
    • 15th Jun 17, 2:04 PM
    Several people are wrong then. Your mortgage is based on the valuation or purchase price, whichever is lower.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Surrey_EA
    • By Surrey_EA 15th Jun 17, 2:06 PM
    • 1,235 Posts
    • 1,450 Thanks
    Surrey_EA
    • #3
    • 15th Jun 17, 2:06 PM
    • #3
    • 15th Jun 17, 2:06 PM
    Not surprisingly, your solicitor is correct.
    • kingstreet
    • By kingstreet 15th Jun 17, 2:09 PM
    • 32,208 Posts
    • 17,249 Thanks
    kingstreet
    • #4
    • 15th Jun 17, 2:09 PM
    • #4
    • 15th Jun 17, 2:09 PM
    You aren't getting the money to pay for the repairs.

    You're getting a price reduction, a smaller mortgage and paying for it yourself.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Cirias
    • By Cirias 15th Jun 17, 4:17 PM
    • 64 Posts
    • 21 Thanks
    Cirias
    • #5
    • 15th Jun 17, 4:17 PM
    • #5
    • 15th Jun 17, 4:17 PM
    As a FTB about to complete on my house, the house buying process was confusing and there is a lot of conflicting information out there. I'd originally thought, too, that we could get a mortgage for the house price and a bit more to use for DIY. If you watch a lot of property shows you often hear them discussing this sort of thing. But as others above have said, the mortgage is for the house purchase/valuation price only, but the lower your mortgage then the less you are repaying ad theoretically the more you can put aside each month for savings.
    • SheilaTheKat
    • By SheilaTheKat 15th Jun 17, 5:40 PM
    • 3 Posts
    • 0 Thanks
    SheilaTheKat
    • #6
    • 15th Jun 17, 5:40 PM
    • #6
    • 15th Jun 17, 5:40 PM
    Thanks everyone! That helped a lot
    • Crashy Time
    • By Crashy Time 16th Jun 17, 12:31 PM
    • 5,225 Posts
    • 2,204 Thanks
    Crashy Time
    • #7
    • 16th Jun 17, 12:31 PM
    • #7
    • 16th Jun 17, 12:31 PM
    Yes, in the glory days of the bubble I think loans of 125% were the norm, pick up a house, a holiday, do some repairs and buy a trolley of booze with the rest, just wish we could get back to that outstanding British economy of old with the resounding battle cry of.....No More Boom And Bust!
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