Is it possible to change (reduce) LTV after valuation and choose another product?

dumpallhere

Hi,

Applying for mortgage tomorrow with 70% LTV.

Have some extra cash put aside and depending on the standard valuation (new build) may be able to go down to 60% or even 50% (if the valuation is done at the purchase price).

Is it possible /allowed to opt for a different product with the same lender if the valuation comes to a figure that we can put in more money as deposit? If allowed, will it take weeks to approve or can be done on a short notice? Don't mind paying the new product fee for a lower LTV product with much better interest rates.

Thanks in advance.

Building_Surveyor

What do you mean by "if the valuation comes to a figure that we can put more money down"??? The valuation does not determine the price, the vendor does. So if the valuation comes out less than the offer you made that does not mean you pay the valuation price. The builder/vendor may not budge, in which case you make up the shortfall or loose out.

Goldiegirl

The lender calculates its lending based on the valuation figure, so a lower than expected valuation can mean that the LTV figure increases, and you are no longer eligible for an Interest rate product.

So yes, it is possible to increase the amount of money you are putting into the purchase and reduce the amount of mortgage you are applying for.

It's just a simple matter of the lender keying an amendment to the existing application, so would be quite quick to do.

If you opted for a different product, this is also just a matter of amending the existing application. So again it wouldn't take long to do

Yorkie1

Although take care with switching products, in case you are charged a new product application fee (check with the lender first).

dumpallhere

Goldiegirl wrote: »

it is possible to increase the amount of money you are putting into the purchase and reduce the amount of mortgage you are applying for.

It's just a simple matter of the lender keying an amendment to the existing application, so would be quite quick to do.

If you opted for a different product, this is also just a matter of amending the existing application. So again it wouldn't take long to do

Thanks. That's exactly what I wanted to know.

dumpallhere

Yorkie1 wrote: »

Although take care with switching products, in case you are charged a new product application fee (check with the lender first).

Definitely on the top of my list of questions for tomorrow's meeting.