Change to mortgage application

f1rsttimebuyer_2

I got an agreement in principal a few weeks ago for an 80K mortgage on a 100K property....

Went shopping and found a flat, offered £96k and the offer was accepted. I've just completed the mortgage application online, but was surprised it didn't ask for any confirmation of the property purchase price or deposit amount.

The KFI document still shows £80k mortgage 20K deposit. The product we've actually selected is 85% LTV mortgage....

Obviously I need to let the society (YBS) know that we're only paying £96k (not 100), but also, as we've got a 85% LTV product, I really only want to put down £17500 deposit.

Will my solicitor sort these changes out, or should I contact the bank?

Will it jeopardise my chance of them fully accepting the mortgage? I was surprised I got accepted for a mortgage as have several missed payments from a few years ago on my credit report so really scared that my mortgage will get declined later down the line.

Thanks in advance

GMS

You will need to contact the lender asap. The solicitor would pick it up as part of the conveyancing and report back to the lender anyway so you night as well get it done sooner to avoid delays.

Whatever the lender will do is up to them. Ignoring it will not help as it wont go away

amnblog

You have gone from 80% loan to value (£80K on £100K) to paying £96K and putting down £17,500 which is 82.2% LTV

That extra 2.2% could turn your 'yes' into a 'no'

Deal with this quickly and ensure your new figures are acceptable to the lender. Certainly before you spend any money on solicitors, booking fees, or valuations.

kingstreet

amnblog wrote: »

You have gone from 80% loan to value (£80K on £100K) to paying £96K and putting down £17,500 which is 82.2% LTV

That extra 2.2% could turn your 'yes' into a 'no'

Deal with this quickly and ensure your new figures are acceptable to the lender. Certainly before you spend any money on solicitors, booking fees, or valuations.

Quite. Might mean the selected product no longer applies and a higher rate may be the result if the case is still acceptable.

amnblog

The joys of working unadvised and direct to lender!