Change to Purchase price. Mortgage help.

sarah3585

Hi,

Due to a couple of things cropping up over the purchase of our property our solicitor has advised we barter the price down a little.

I would like to know how this will affect our mortgage offer we currently have with nationwide if the purchase price goes down.

We currently hold a mortgage offer for £80,000 which is 80%. Can we change it at this date to either give a lower deposit still achieving the 80% mortgage or having a 25% deposit if the purchase price does come down?

Nationwide help lines are closed today so looking for a little heads up advice.

Thanks

opinions4u

The LTV is based on the lower of the purchase price or valuation.

If the purchase price goes down but you borrow the same amount then your LTV rises.

But there is no reason for them to stop you reducing your loan amount as long as it fits with the product that you are buying, or they can provide an alternative product.

The change in purchase price won't allow you to move from an 80% product to a cheaper 75% product unless you are introducing a bigger deposit though.

sarah3585

Thanks for your help.

We would reduce our loan so our monthly payments would decrease slightly?

Do you know if this is a case of just ammending some figures or will it start the whole process off again (looking into our employment ect)

opinions4u

sarah3585 wrote: »

We would reduce our loan so our monthly payments would decrease slightly?

Good idea.

Do you know if this is a case of just ammending some figures or will it start the whole process off again (looking into our employment ect)

Just ask them to reduce the amount and issue a revised offer. 5 minutes work for them.