Mortgage retention super problems

kingstreet

MORTGAGE_RETENTION_STRESS wrote: »

A further question, they told us in order to keep the same repayments as arranged, we will have to put the extra in (which is ok) but then,
we are borrowing less, putting a higher deposit - but the rates won't change, neither will our monthly repayments (????) - so wouldn't we be paying back an extortionate amount considering our deposit would be in excess of 20%?

I've just read this again and it doesn't make sense. If the rate and term remain the same and the borrowed amount falls, the monthly payment must fall too.

You need to ask them for a new key facts illustration to explain this.

MORTGAGE_RETENTION_STRESS

Kingstreet,

You're a genius. I got so befuddled with the rest of it, that i forgot the basics. We are now booked in again for Saturday to go through the Key Facts Illustration, which we are now told will reduce our repayments (and so it should...) So we will see where that takes us. But that was the extra push needed to realise the info was all wrong.

Thank you!

upsizer

This is interesting.

We are going through a mini nightmare trying to get a mortgage through the valuation stage.

To cut a long story short, we agreed to buy at £203,000. The valuation report came back at £200k with a 10k retention. We have also had to get extra surveys/reports done.

Anyway, what I couldn't fathom was that the bank said they don't do retentions either. When I asked what that meant, I didn't really get a clear answer.

In the meantime the vendor has agreed to drop price to 200k (ie the valuation price) and we have had reports done which hopefully will show that reason for the initial 10k recommended retention is not an issue after all.

I couldn't understand why the bank can't lend us the amount we need (ie 85% of 200k) when that is the valuation price. The 10k retention would increase the valuation to 210k.

Am I missing something?

Sorry to hijack your thread by the way!