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Seller drops price, does lender find out?
JamesNJen
Posts: 9 Forumite
A buyer agrees to buy a house for a £300k, gets the house valued,
applies for a mortgage and gets accepted for a 90% mortgage ie £270k.
What is the situation if, before completion, the seller offers to
reduce the price to £280k in order to speed up completion?
Is the buyer's or seller's solicitor legally obligated to tell the mortgage
lender that the purchase price has changed, therefore giving the lender
the opportunity to lower the amount of the proposed loan?
Or would the lender still lend the original amount and the amount of
the deposit would be reduced proportionately?
Thanks for any help.
applies for a mortgage and gets accepted for a 90% mortgage ie £270k.
What is the situation if, before completion, the seller offers to
reduce the price to £280k in order to speed up completion?
Is the buyer's or seller's solicitor legally obligated to tell the mortgage
lender that the purchase price has changed, therefore giving the lender
the opportunity to lower the amount of the proposed loan?
Or would the lender still lend the original amount and the amount of
the deposit would be reduced proportionately?
Thanks for any help.
0
Comments
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We've just had the price on the house that we are buying dropped. EA sent out a revised sale thing, and we just went into the mortgage brokers this morning to sign for an amended mortgage offer.It's not easy having a good time. Even smiling makes my face ache.0
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So did you have to do that? If you hadnt, you would have saved money on the deposit.Wickedkitten wrote:We've just had the price on the house that we are buying dropped. EA sent out a revised sale thing, and we just went into the mortgage brokers this morning to sign for an amended mortgage offer.0 -
I suspect in the small print of the mortgage offer it has 90% of the lower of the valuation or purchase price.A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
JamesNJen wrote:So did you have to do that? If you hadnt, you would have saved money on the deposit.
Nah, deposit is still 10% of the original priceIt's not easy having a good time. Even smiling makes my face ache.0 -
I like your thinking, but you cannot reduce the deposit this way. Your solicitor will have to inform the lender of the actual purchase price, otherwise they and you could be accused of mortgage fraud0
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