% loan to value

Tearful1

Our current mortgage offer is for a 70% loan to value product. What would happen if just before exchange the purchase price changed? Would we have to tell the mortgage company and change product or is the value bit the figure that it was valued at? Thanks

ValHaller

Yes, you would need to inform the lender - your solicitor will do this anyway, but best if you get there first. More details from you will get a fuller explanation,

Tearful1

Thanks ValHaller. Basically I'm just considering all eventualities. We are currently spot on 70% L2V (£210,000 mortgage, £90,000 deposit). But our (cash) buyer is being very slow and we are concerned they may ask to pay less for our property at the last minute, and therefore we may need to ask for a reduction in the one we are buying. Also because of our buyer being so slow our purchase is now back on the market at £300,000. We are thinking that if they reduce it any further then we will not want to be paying £300,000 for it so again may need to change our offer before exchange.

My mortgage offer expires 6th May so today will be contacting the lender to see what we have to do. Basically everything is ready to exchange apart from the buyer getting final bits of cash to her solicitor (which is what is taking forever!).

kingstreet

If you need to alter the purchase price and mortgage amount you simply call the lender and tell them.

If the loan to value increases beyond the upper limit for the product you have selected, you will be asked to choose a new one and chances are, if the LTV has gone up, the rate will be worse.

If an extention to the drawdown deadline is needed, your solicitor requests this from the completions department, the solicitor-only department which deals with funds release.The completion date will be needed for the lender to consider it.

If the six month period from valuation is reached, the valuation will need to be re-done and possibly new status information requested.