My mortgage offer has arrived!

booey_2

Nationwide have finally sent my motgage offer :T


But it's for the wrong amount on the selling price. They've put £2000 more than I'm actually buying the flat for. The amount they are lending me is correct though. Have spoken to Nationwide and solicitor and they both think this shouldn't be a problem. Fingers crossed!

I am meeting with sols on Tuesday to go over the contract and sign it.

What happens from there? Do I pay him the deposit and his fees on Tuesday?

All advice welcomed

nickinoo

booey wrote:

Nationwide have finally sent my motgage offer :T


But it's for the wrong amount on the selling price. They've put £2000 more than I'm actually buying the flat for. The amount they are lending me is correct though. Have spoken to Nationwide and solicitor and they both think this shouldn't be a problem. Fingers crossed!

I am meeting with sols on Tuesday to go over the contract and sign it.

What happens from there? Do I pay him the deposit and his fees on Tuesday?

All advice welcomed

Congratulations.

Can I just ask how long it took the Nationwide to sort your mortgage out & was this a new mortgage?

Sorry to be so nosy but we are taking out a bigger mortgage with Nationwide for our new home.

booey_2

It has taken them almost 7 weeks.

I'm a FTB so it's a new mortgage.

It's been a nightmare getting this far TBH. They had my employer ref for 4 weeks before they bothered to read it. It hadn't been signed or dated. Mortgage advisor in my branch went on holiday for 2 weeks and didn't hand my case over to anyone in his absense.

It's only because I have been really pushy with them that I have now got this far.

Based on my own experiences I wouldn't recommended them to my worst enemy.

Ian_W

Usually the solicitor will tell you when s/he wants your dough. Signing the contract isn't in itself all that significant, the deal becomes binding when your sol exchanges the signed contract with the vendors brief. You normally pay the deposit in cleared funds just before exchange and most solicitors want their fees before completion takes place, though it can vary.

AndrewSmith

booey wrote:

Nationwide have finally sent my motgage offer :T


But it's for the wrong amount on the selling price. They've put £2000 more than I'm actually buying the flat for. The amount they are lending me is correct though. Have spoken to Nationwide and solicitor and they both think this shouldn't be a problem. Fingers crossed!

I am meeting with sols on Tuesday to go over the contract and sign it.

What happens from there? Do I pay him the deposit and his fees on Tuesday?

All advice welcomed

I would double check that with your solicitor. It means that the loan to value percentage will be wrong and that the legal paperwork trail will not match the purchase price lodged with land registry. Remember that once the funds have been drawn at exchange the mortgage offer is a legally binding document so it must be right.

In my experience when this has happened they usually have to issue an amended offer with the correct purchase price.

Joe_Bloggs

The OP did state that 'the amount what was being leant was correct'. Perhaps what was revealed was how much could have been borrowed. An upper limit given the circumstances. Dealing with mortgage matters are stressful .Bone up on the Nationwide's terms and conditions. If anyone can find a copy online then let me know.
J_B (Thanks to Andrew and Ian and all contributers to this forum.)

Woby_Tide

Can't fault Nationwide on their offers and tehir support normally but had an interview about a remortgage today and left in absolute amazement at ineptitude of an alleged 'Branch Manager'. Spent most of the meeting pointing out what buttons or figures they should be enterimg where. Also found not to trust teh Nationwide mortgage calculator as it doesn't actually takeinto account all tehir lending rules when giving calculations. Still will stay with them as this is first bad experience and hopefully last

Tassotti

This could work in your favour. Maybe the surveyor valued it at 2 G more than the purchase price.

In effect this would reduce your LTV borrowing and possibly reduce the interest rate on your mortgage.

Could save you many dollars over the years.

Have you got a copy of the valuer's report?

booey_2

I noticed the difference as soon as I got my copy of mortgage offer. They say selling price is £2000 higher than it actually is.

It also says I am getting a mortage of 92.47% of the purchase price but I'm not, I'm getting a mortgage of 95% of the purchase price.

Phoned sols, he said I need Nationwide to amend offer. Phoned Nationwide, he said they consider to property to be worth £2000 more than I'm paying for it. Phoned sol again and he now thinks this is not a problem.

I've had so many up and downs over the last few weeks I'm inclined not to believe either of them

I'm worried the vendor will discover Nationwide think it's worth £2000 than the offer he has accepted from me and try to put the price up. Can he do this?

booey_2

Woby_Tide wrote:

Can't fault Nationwide on their offers and tehir support normally but had an interview about a remortgage today and left in absolute amazement at ineptitude of an alleged 'Branch Manager'. Spent most of the meeting pointing out what buttons or figures they should be enterimg where. Also found not to trust teh Nationwide mortgage calculator as it doesn't actually takeinto account all tehir lending rules when giving calculations. Still will stay with them as this is first bad experience and hopefully last

My experience was pretty much the same. I had to explain to the staff the difference between before tax and after tax on my wage slips :rolleyes:

AndrewSmith

The solicitor is right,

The mortgage has been underwritten on the basis of 95% of the purchase price or valuation WHICHEVER IS THE LOWER.

As you are not paying the higher price they cannot base the mortgage offer on it.

Trust me, you need to get the mortgage offer amended. The problem with calling the lender is that you will most likely speak to a branch employee who has had very limited mortgage experience. I deal with cases such as this every day will all lenders and the situation is that the mortgage offer must reflect both the mortgage amount and the purchase price you are paying, or the property valuation whichever is lower.

Andy