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Understanding a mortgage offer (when you're a thicky)
kford224
Posts: 214 Forumite
Hello All!
Posted this under mortgages, but may be more suitable for this forum...?!
We are FTB and received a formal mortgage offer from Santander in the post today . I thought (optimistically) that it would involve documentation saying "Hurrah, here is the money we are going to give you!" but am finding elements of it a bit confusing....
The survey (Valuation for Mortgage Purposes) is included, and in it under "Repairs recommended as a condition of the mortgage" it has:
"Instruct a specialist contractor to inspect the whole property and report on internal dampness and the condition of all timbers including the roof void. All necessary works to be carried out. The inspection to be carried out irrespective of existing guarantees, invoices or estimates"
Underneath this it says "Recommended retention - £2000" (I assume this relates to the property being valued currently at £173,000 and us buying it for £175,000?!)
Can someone please advise as to what the process is from here?! Is it something the solicitor will lead and advise us on? Is it saying that we need to get these works done in order to get the loan?! This doesn't make sense because we need to loan in order to get the house?!
I know I am being a thicky, but I am just unsure as to the process from here
Many thanks in advance!
Posted this under mortgages, but may be more suitable for this forum...?!
We are FTB and received a formal mortgage offer from Santander in the post today . I thought (optimistically) that it would involve documentation saying "Hurrah, here is the money we are going to give you!" but am finding elements of it a bit confusing....
The survey (Valuation for Mortgage Purposes) is included, and in it under "Repairs recommended as a condition of the mortgage" it has:
"Instruct a specialist contractor to inspect the whole property and report on internal dampness and the condition of all timbers including the roof void. All necessary works to be carried out. The inspection to be carried out irrespective of existing guarantees, invoices or estimates"
Underneath this it says "Recommended retention - £2000" (I assume this relates to the property being valued currently at £173,000 and us buying it for £175,000?!)
Can someone please advise as to what the process is from here?! Is it something the solicitor will lead and advise us on? Is it saying that we need to get these works done in order to get the loan?! This doesn't make sense because we need to loan in order to get the house?!
I know I am being a thicky, but I am just unsure as to the process from here
Many thanks in advance!
0
Comments
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I think what it is saying is that they are going to keep back £2000. So you will need to put in another £2000 in order to complete on the property. When you have bought the property, then you will have to some work done to sort out the damp which will need to be inspected before they will release the £2000.
IIWY I would drop the offer by £2k.0 -
I think what it is saying is that they are going to keep back £2000. So you will need to put in another £2000 in order to complete on the property. When you have bought the property, then you will have to some work done to sort out the damp which will need to be inspected before they will release the £2000.
IIWY I would drop the offer by £2k.
Ahh OK! So it goes ahead 'as normal' so to speak?! In theory, could we not bother with the inspection or works and just leave the £2000 off the mortgage, seeing as all that is likely to come to more than £2000 anyway?!
We will of course, I was just wondering on the alternatives/worst case scenarios
0 -
As its a condition of the mortgage, then in theory if you don't do the repairs then they could withdraw it from you. In practise unlikely I would think but best to get it all sorted.0
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