My bank wont lend me mortgae amount agreed

windrunner11

I am currently trying to move house. I had an offer accepted on a property and a mortgage was agreed. After I had the survey done, I re-negotiated the price as it needs a rewire but now the bank won't lend me the original amount to get the work done. I don't understand. Help.

real1314

windrunner11 wrote: »

I am currently trying to move house. I had an offer accepted on a property and a mortgage was agreed. After I had the survey done, I re-negotiated the price as it needs a rewire but now the bank won't lend me the original amount to get the work done. I don't understand. Help.

They lend against the asset, not against work that may or may not get done.
You reduced the price, therefore they reduced the loan. Quite simple really. :cool:

ACG

real1314 sums it up quite well.

If you want to borrow say 85% of the properties value, it goes off the valuation or the purchase price (whichever is the lower). So if you negotiating the price down means the mortgage is now 86% of the purchase price then you either may not meet the banks criteria or you may have to move to have a product with a maximum 90% lending which would typically not be as good rate.

kingstreet

is a retention being held, or have they simply moved the mortgage amount in line with the change of purchase price?