Change in mortgage offer

tiernsee

I was buying a property, had the mortgage offer, survey etc and the seller changed his mind.

Licked my wounds and I have now found another property I have offered on but it is less money than the first. The mortgage offer was a remortgage of my residential property to release some equity so I now need to release less equity.

Can anyone advise what the process will be - my own house has been valued and they offered me 60% of the value, however I am now looking at needing around 50% of the value is this straightforward or am I likely to have to make a whole new application?

Thanks for any advice.

_Andy_

If it's just case of changing the loan amount (esp as it's going down), it's simple, just give them a call they will issue a new offer

Senior_Paper_Monitor

..... and for all our readers out there:

Our experience is that 3 times as many vendors pull out of the deal, compared with our clients doing so (by choice or inability to raise funds).

In the negotiation stage the purchaser is spending the money, the vendor isn't.

If you are a purchaser, put at least as much effort into validating the vendor's creditability and ability to complete as the estate agent will be putting into validating yours !!!!

Andy_Wilson_FS

_Andy_ wrote: »

If it's just case of changing the loan amount (esp as it's going down), it's simple, just give them a call they will issue a new offer

No they won't. They will need full details of the new property and a valuation. Whilst they will have the original applicant's details, they will need to submit a new application using those details. It can be as easy as completing a 'change of property details' form but for some lenders it is a whole new start again job.

Also, where there has been some considerable time (eg over 6 months) since the first application went in, the lender may need to re-confirm such things as income details and carry out a new credit check.