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Reducing Buying Price after Mortgage Offered?!?!
MrsC2109
Posts: 2 Newbie
Hi,
My fianc! and I have had an offer accepted, got the AIP, had a homebuyers survey which didn't throw up anything too unexpected, so got the mortgage offer and are about ready to exchange.
However.... We got a damp proofer and a builder in to quote for work and it transpires that what the survey said was damp which would require £2k work on it, is actually caused by problems with the way the roof has been laid and also blown rendering and a bunch of other stuff. Several quotes have now put the repairs at £12-15k and so we're negotiating with the sellers to split the cost of the repairs.
Sorry for taking so long to get to my point but here it is.... Our mortgage offer is based on our current 15% deposit. Reducing the buying price and thus reducing our deposit to reclaim that cash would mean a 12% deposit, which I assume would mean starting the mortgage hunt all over again?
Can we just ask the seller to reimburse us after completion?
Sorry for the massive post and thanks in advance for your help!
My fianc! and I have had an offer accepted, got the AIP, had a homebuyers survey which didn't throw up anything too unexpected, so got the mortgage offer and are about ready to exchange.
However.... We got a damp proofer and a builder in to quote for work and it transpires that what the survey said was damp which would require £2k work on it, is actually caused by problems with the way the roof has been laid and also blown rendering and a bunch of other stuff. Several quotes have now put the repairs at £12-15k and so we're negotiating with the sellers to split the cost of the repairs.
Sorry for taking so long to get to my point but here it is.... Our mortgage offer is based on our current 15% deposit. Reducing the buying price and thus reducing our deposit to reclaim that cash would mean a 12% deposit, which I assume would mean starting the mortgage hunt all over again?
Can we just ask the seller to reimburse us after completion?
Sorry for the massive post and thanks in advance for your help!
0
Comments
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I'm confused what cash you are reclaiming? If the price is less then surely your deposit is worth more? If you can't afford to pay for the repairs and the purchase costs (including deposit) then you shouldn't be buying a house that requires up front repairs.
Can you get a mortgage with a 10% deposit in that case?0 -
I'm confused what cash you are reclaiming? If the price is less then surely your deposit is worth more? If you can't afford to pay for the repairs and the purchase costs (including deposit) then you shouldn't be buying a house that requires up front repairs.
Can you get a mortgage with a 10% deposit in that case?
If we simply lowered the price by reducing our deposit then the loan to value ratio would be changed from 85% to 88% and the mortgage is based on 85%. Lowering the mortgage to reflect the lower price would only actually save us £1,500 off of the £5k we are negotiating.
We could afford the repairs that came up in the survey, but a jump from £2k to £15k is somewhat out of our budget. It's no different to reducing our offer, but because of how far the purchase had gone before all this came up, we don't want to start all over again with mortgages so are exploring other options such as continuing with the existing buying price and getting money back off the sellers instead of reducing the buying price0
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