HSBC - common practice to drop the LTV between in principle and offer?

mdulling

:eek: I've got an offer on my flat and today the buyer came around and basically said his mortgage co (HSBC) have demanded an additional 10% deposit more than the in principle offer, in order to go forward...meaning an additional £30K ish he has to get his hands on to do the deal.

I'm keen to move on but have other people come across this a lot? It basically means he's looking for a 10K reduction in price...aarrrgh...

thoughts appreciated while I reach for the gin. Mel

Newbird

I'm afraid, most lenders are going the same way.

FLATS = SCHMATS ...see more on this board, soz not much help I know and haven't got the link. I'm too hungry now to look!
Did someone mention Gin? add the Lemon & T? then don't mind if I do...hehhhe :beer:

M.Williams2008

I very much doubt this has happened, more like hes just looking to get another £10k off the price & cooked that idea up! Mainly bcos its a buyers market at the mo as prices are comming down every mth......I have just remortgaged to HSBC & asked if anything would change from the principal offer to having the mortgage approved regarding the rate, length of fixed term & amount they would lend me & they assured me nothing would change at all.

Incisor

Dilemma. Believe him and be ripped off or refuse it and say goodbye to a buyer who has been let down by his bank.

I think I would ask to see written evidence before conceding.

dunstonh

It is possible that the buyer is close to the maximum loan to valuation for the lender and the valuation has come in lower than expected (not uncommon in a falling market and with in particular with flats and new builds). If the buyer doesnt have the funds to make up the difference the only option then is for you to lower your price or they pull out.

Believe him and be ripped off or refuse it and say goodbye to a buyer who has been let down by his bank.

The bank almost certainly havent let him down. Its either the buyer trying it on or valuation not coming up enough.

Conrad

Something to watch out for - sometimes buyers want a price reduction as they are under the misconception that this reduction will be used towards the deposit shortfall, however lender usually take no account of such a price reduction other than to state they will lend 90% (for example) of the PRICE PAID (not the valuation).

Supercali

He might not be lying as we had a Offer in Principle a week ago (not with HSBC) and we got the forms to fill out and return but the 85% LTV was dropped to 75% and they wouldn't accept our application

PBA

Have a quick word with an advisor in a branch of HSBC. They won't be able to give you details about one person's specific application, but they will be able to tell you how their rates have changed recently.