DO I need to tell the Estate Agent?

papermoney

Our mortgage has been messed up.

The AIP stated one amount, we went through valuation etc got the final mortgage offer and it's 7k less than we need. We can not find the 7k so we are having to start the process again going through a different mortgage lender (all done through a IFA). This is obviously going to hold things up. I have no idea by how long.

Do I need to let the Estate Agent know? Or can I just carry on and hope the mortgage offer comes in soon?

mr.broderick

Would the vendors take a 7k chip at this stage?

papermoney

mr.broderick wrote: »

Would the vendors take a 7k chip at this stage?

I did think this but he would only drop 3k off the asking price as it was as it's a couple divorcing.

Doozergirl

I think you should tell. Part of the reason things go wrong is that people hide the truth to save people from the stress, but it does often make it worse.

There are people expecting to move on x date (everyone has a date in their head) and the most notice you can give people, the better. It gives people the chance to adjust their expectations and appreciate what an open and honest person you are

They won't be happy to start with, but they'll get over it. Put the word through the EA and then I suggest you have a quick chat face to face just to allay their fears; sometimes people think it's going to collapse when it isn't - you can explain far better than an EA.

Debt_Free_Chick

I agree. Tell the EA, but don't be "doom & gloom" about it. Just say that there's been a mix-up and the mortgage offer is less than the amount you wanted, but that "you're on the case".

What I don't understand is why you need to "start again" - have you called the first lender and asked them if they would make an offer for £7k more?

papermoney

I have asked if we could borrow the extra 7k but they won't. They have said the max they can do is 128k and we need 135k

mr.broderick

papermoney wrote: »

I have asked if we could borrow the extra 7k but they won't. They have said the max they can do is 128k and we need 135k

A.I.P Never in stone is it?

Lenders need to tweak their systems better, There have been loads of cases like this recently..

Kez100

Why has this happened? Has the property valuation come back lower or is it due to the multiple on your earnings?

If the former then I would certainly think about renegotiating price.

papermoney

Kez100 wrote: »

Why has this happened? Has the property valuation come back lower or is it due to the multiple on your earnings?

If the former then I would certainly think about renegotiating price.

Apparently on the 'Dip' that they do ready for an AIP the IFA put in child maintainance, child tax credit and benefit to 'bump' it up. When the offer was issued the mortgage company said they would not take these into account.

The house has been valued at 135k

mr.broderick

papermoney wrote: »

Apparently on the 'Dip' that they do ready for an AIP the IFA put in child maintainance, child tax credit and benefit to 'bump' it up. When the offer was issued the mortgage company said they would not take these into account.

The house has been valued at 135k

Who's the lender? So why was the A.I.P for the full amount then?

sounds like a shambles.

silvercar

Everyone is out for themselves.

Provided your IFA is on the case and (a) he is confident that he can get someone else to give you the amount you need and (b) it is a lender that can process applications quickly, I would keep quiet.

What do you gain by telling the vendors? Either they agree to wait or they remarket. By not telling them, the EA will enquire sooner or later, by which time the offer will only be days away hopefully.

If the IFA can't get you a mortgage of that amount and can't work quickly then you need to be open about it.

I would be concerned that your IFA put forward an application to a lender who won't accept all your income streams? Shouldn't he know better?

Option B for you would be to take a loan along with this mortgage.