Money taken off mortgage to allow for extra repairs...where is it taken from?

poodledoodledoo

I apologise for starting yet another thread but I really need this question answered....
Since the price of the house i am buying has dropped to allow for all the extra repair costs, where is the money taken from?
Do I take it off the deposit to give me the funds to carry out the work or does it come off the loan amount?
Sorry if this seems like a daft question but I am a FTB so please be kind to me

silvercar

if the price has dropped, you just pay less for the house.

if it was £180k and is now £170k you are paying the sellers less. You could fund this by keeping some of your savings for the work and taking the same mortgage you originally intended.

If you intended getting a 100% mortgage you had better check if the mortgage company will let you have more than 100%, loads won't!

lynzpower

it would of course be more moneysaving to reduce your mortgage borrowing to reflect the reduction in the property's price, than reduce your cash deposit and use your cash for nice things for new house

poodledoodledoo

lynzpower wrote:

it would of course be more moneysaving to reduce your mortgage borrowing to reflect the reduction in the property's price, than reduce your cash deposit and use your cash for nice things for new house

...Like a decent roof and electrics that wont kill us all :rotfl:

No seriously, we would really want to take it off the deposit as we were originally paying a deposit of nearly 40% which is quite substantial. There is so very much to do to the place that we need as much cash as we can get just to make it fit to live in.