Mortgage offer received for too much

Pennylane86

Hi all,

I finally received the mortgage offer in writing today-yay!
When I first applied for the mortgage, it was based on the price I was paying for the house, however we have since got the house reduced by £5000 which my mortgage broker lady knew and told Halifax.
We have since received the mortgage offer based on the original price we were paying. Is this normal??
Obviously I'll get in touch with my mortgage lady tomorrow & let her know, but I was just wondering if anyone had experienced this before? Is there any (even slight) possibility that we could still get the mortgage for this amount, and in theory use the money we would be saving by not paying such a big deposit for doing work on the house??

In case the figures help:

Original purchase price : £110,000
Mortgage: 85% (£93500)

New price: £105,000
Mortgage should be: £89,250
Mortgage offer: £93,500

Thanks for any advice!

ValHaller

You MUST get this sorted sooner rather than later. It will be discovered somewhere along the way - and if that is between exchange and completion, it will cause big problems.

93500 on 110000 is 89% LTV and the lender may still be happy to do this - but if your deal is for 85% LTV or less, you may not be allowed the money or you may have to pay a higher interest rate.

Make sure the lender is informed.

kingstreet

"Broker lady" probably means person who works in estate agent's office who got me to buy loads of sub-standard insurance products AND charged me a fee...!

She has not told Halifax, because she needs to enter the case on Halifax Online and change the purchase price and mortgage amount and perform a "requote."

If you want to retain the product you requested, you need to ask the "broker" to change the purchase price and mortgage amount so the lender knows about it.

Pennylane86

Thanks for your replies, although a little quick to judge kingstreet...... I have not taken out any insurance products or anything for that matter through my mortgage broker, let alone sub standard ones. I may be a first time buyer, but that doesn't mean I don't have common sense.
I spent a great deal of time sourcing everything such as insurance myself, opting for quality and suitability over price.

Pennylane86

Thankyou vanhaller-I emailed my lovely mortgage broker/advisor as soon as i got the letter this evening, and will be following that up with a call first thing tomorrow morning.
I'm sure they won't want to lend me the extra amount, but I just wanted to see what the likely hood was. In all honesty, I'd rather work hard to save to do other work than have a Bigger mortgage which will be with me for Many years!
Thanks again for your advice

Simon_gloster

The solicitor will notice the purchase price and loan amount do not correspond with the memorandum of sale from the estate agents and cannot exchange and complete. This needs sorting now and if you told your broker this they should change the figures on the app.

If it now means the LTV has changed, as kingstreet says it needs requoting and possibly underwritten again on their system. Not a done deal yet in afraud.

Then again you may be lucky and they offer lower rates now.

kingstreet

Pennylane86 wrote: »

Thanks for your replies, although a little quick to judge kingstreet...... I have not taken out any insurance products or anything for that matter through my mortgage broker, let alone sub standard ones. I may be a first time buyer, but that doesn't mean I don't have common sense.
I spent a great deal of time sourcing everything such as insurance myself, opting for quality and suitability over price.

Yes. I spend too much time on here.

I'm getting jaded.

Twiglet83

HI, i also have had the same thing happen.

only 1.5K too much though

was it easy to resolve?

Goldiegirl

It should be easy to put right, just go to the broker or lender and ask them to issue an amended offer for the amount you wish to borrow