Mortgage retention

Racml34

Hi I'm new to the forums and a FTB so please be gentle!

In brief, offer accepted, mortgage offer issued from Santander for full amount with £7500 retention due to possible damp and electrical works required. No problem with this although it will really stretch us financially!

Full reports done to ascertain extent of works and cost and these have come in much lower - approx £3000. Sent to Santander along with reduction in purchase price requesting they lower retention. Offer sent today for full amount again but with same level of retention. MA advises they will look at retention in the next few days with a view to lowering it but in the meantime we should be ok to exchange as Santander will just send amendment not a new offer. I can't understand why they are doing this after sending the offer when they delayed sending it to get the surveyor's thoughts on our reports.

Everything else is in place to exchange, no chain, deposit already paid to solicitor, searches completed and everything returned as requested. Any thoughts on MA's advice?

Thanks in advance

Thrugelmir

Retention is an incentive to get you to complete the works. Rather than a precise costing of the works to be done.

Racml34

Thanks I realise what retention is and Santander have said they are willing to look at lowering it. My question however is whether it is ok to go ahead and exchange with the current offer as I thought completion date was fixed prior to exchange and if there is a delay in issuing the amendment this could affect completion? This may seem a silly question but as a ftb I have no experience