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

disney_cjd

Wutang wrote: »

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

Mmmmmmmmmmmmmmmm

Mattfoo

The same happened to us a couple of months back with FD.
The FD valuers came in with a £40k less valuation than a Woolwich valuer 2 weeks before ! Still this made no difference to the outcome of the offer and we accepted, glad we did as we got the +0.49% tracker on BOE Rate.

I did not hesitate and am so glad I didnt. FD have been fantastic and their UK based contact centre is excellent. Very friendly and always helpful. I would have no hesitation in recomending you FD.

JayZed

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

On the contrary, you have the right to pull out of a mortgage any time up to drawdown. The lender has the same right.

As countless people above have said, you have nothing to lose by accepting the revised offer, whereas if you quibble with them you'll just be stuck on your current high rate for longer.

Ilian2008

JayZed is absolutely right

luckyfool

disney_cjd wrote: »

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.

How would it effect whether you want to borrow more in the future? I fail to see your logic here.

Locoblade

Disney, are you under the impression you would have the facility to borrow back up to 80% of the LTV as mentioned in FD's offset terms? If so, I suspect this is a misunderstanding, as I believe you can only ever borrow back up to the original loan amount OR 80% LTV, whichever is lower, so in this case you could only ever borrow back up to £100k.

If you intend to take an additional mortgage in future to pay for something like an extension, they'll re-value your house anyway to ensure the total amount you're borrowing is still within their LTV limits, so whether they value your house today at £320k or £150k, its not going to affect you as far as I can see.

disney_cjd

Locoblade wrote: »

Disney, are you under the impression you would have the facility to borrow back up to 80% of the LTV as mentioned in FD's offset terms? If so, I suspect this is a misunderstanding, as I believe you can only ever borrow back up to the original loan amount OR 80% LTV, whichever is lower, so in this case you could only ever borrow back up to £100k.

If you intend to take an additional mortgage in future to pay for something like an extension, they'll re-value your house anyway to ensure the total amount you're borrowing is still within their LTV limits, so whether they value your house today at £320k or £150k, its not going to affect you as far as I can see.

Thanks, thats the answer I was after.

As a FYI, they have agreed that I was right and that we do not have to sign the new offer and they will proceed on the old one.