Reducing your mortage amount between exchange & completion.

Sewinggirl

Hi there
I cannot see that this question has been asked before but please exucuse me if it has.
We are buying a new build property with the deposit from one of our flats. We are due to exchange on the property immenently as is usual before the house is completely finished.

Our completion date is yet unknown but is thought to be in Feb sometime weather permitting.

If we sell our our other flat in the meantime. We we be able to use the proceeds to decrease the amount of mortgage orriginally asked for without paying an early redemption fee?

Is it possible just to change the amount of money borrowed (i.e. less) if you have already exchanged contracts?

Thanks for your help in anticipation.

Wh05apk

Yes just go back to your lender and say you wish to redcue the mortgage by £x, you may find this will allow you to take advantage of a better rate (although that may incur a cost if you change the deal)

thomasdown

As said by someone else this shouldn't be a problem, this happened to me. We got accepted for the mortgage and then re-negotiated £5k off the price. We got our mortgage with HSBC and the mortgage guy in branch said that as long the mortgage is on the system he can see, then he will just reduce the mortgage on the computer. He said if its less it can be done but if more a new application would need to be done. We did have to sign a new mortgage offer though which confused the solicitors and it put a couple of days on exchange.

Hope this helps