Verification required on my vendor gifted mortgage calcs

GMS

Purchase Price is £154,500 therefore this is the figure to be used for calculations.

The valuation of £160,000 does not come in to play. This cannot be used as the LOWER of the 2 will be used.

See the reply initially with the figures on.

You cannot use the higher figure of the valuation.

Work off £154,500.

5% vendor gift (if allowed) ia £7,725.

All other funds will need to be from mortgage and savings.

zooport

Yes, I can see where my confusion lies now. The purchase price is actually £162,225. the £154,500 is the purchase price minus the vendor gift. ie what the vendor will receive.

GMS

If the purchse price is that then the lender will work off the valuation figure of £160,000.

Your offer is £154,500 though. How is the Purchase Price higher?

Don't try to fudge the figures or it will all go wrong on completion if not before.

You really need to get some proper advice, not speak to a bank adviser.

Sounds like neither you or the 'adviser' know the numbers.

Any vendor gift will need to be declared and will form part of the deposit. It CANNOT be added on to the purchase price.

zooport

No, I can see what I've done wrong. I've effectively counted the vendor gift twice. The purchase price on the mortgage is £162,225 and that is what has been agreed with the estate agent.

GMS

zooport wrote: »

No, I can see what I've done wrong. I've effectively counted the vendor gift twice. The purchase price on the mortgage is £162,225 and that is what has been agreed with the estate agent.

The problem you now have is that the valuation is lower than the purchase price so the lender will base the figures on £160,000.

You may want to renegotiate with the vendor