Help please - FD want to alter the terms of my signed Mortgage offer. Can they?

disney_cjd

Hi All

Let me explain what has happened. We received a mortgage offer from FD which was signed by them and then we signed and returned it.

They have still not completed our re mortgage and today say that they want us to sign a new offer document as they put the valuation at 315k and the valuers came back at 275k.

Now I thought one its signed its signed and we do not have to change it? Is that the case or can they force us to resign?

It does not affect the LTV as the mortgage anount is just over 100k but it seems wrong o me and would also affect me if I wanted to borrow more later.

Thanks for your advice in advance

Baz_2

Most offers will state that it is subject to a suitable valuation. So yes they can.

Be thankful it doesn't change your offer rate.

bigstevex

I wouldn't worry about it, as you say it doesn't affect the ltv, and as the previous poster says it most likely states 'subject to valuation' or something along those lines

InMyDreams

disney_cjd wrote: »

Hi All
and would also affect me if I wanted to borrow more later.

Would it? I would have thought that if you wanted to borrow more later they would do another valuation anyway, wouldn't they? Isn't that how so many people managed to borrow again and again against their homes when prices were rising?

disney_cjd

Thanks all.

I have read all of the documents and nowhere does it say subject to valuation. In fact it list the valuation at the higher amount a few times.

I have asked them to check and double check. I want to get onto this rate asap as I am paying through the nose at the moment with One account

thanks all for your replies.

Cheers

Baz_2

disney_cjd wrote: »

Thanks all.

I have read all of the documents and nowhere does it say subject to valuation. In fact it list the valuation at the higher amount a few times.

I have asked them to check and double check. I want to get onto this rate asap as I am paying through the nose at the moment with One account

thanks all for your replies.

Cheers

Well not signing the new one is only going to hold up the process. I cant see the benefit in arguing with them.

disney_cjd

Baz wrote: »

Well not signing the new one is only going to hold up the process. I cant see the benefit in arguing with them.

But surely I already have a legally binding offer?

They make it very clear that when we sign and return it then thats it, its a contract and you are bound by it.

Seems one way to me.

CJD

silvercar

They can withdraw the offer if new things come to light before drawdown of funds. A significant drop in property value could be enough.

I don't see what you lose by signing it.

jiggy2

disney_cjd wrote: »

But surely I already have a legally binding offer?

They make it very clear that when we sign and return it then thats it, its a contract and you are bound by it.

Seems one way to me.

CJD

after section 13, there is a section for special conditions, on my mortgage offer.

it states there - subject to satisfactory valuation received prior to completion. so in my case they can change it

so if there is no special conditions section, not sure if they can change it.

Jig

Baz_2

disney_cjd wrote: »

But surely I already have a legally binding offer?

They make it very clear that when we sign and return it then thats it, its a contract and you are bound by it.

Seems one way to me.

CJD

But surely they are giving you another offer instead?

I fail to see what difference both offers make to you. So why drag your feet?

Wutang_2

I would pull out immediately - how dare they lend you money on a depreciating house value