Implications of price reduction following formal mortgage offer

Tryingtobuy

Many thanks to all those who contribute to this forum - it has proved iinvaluable to us so far!

We are first time buyers. We have a formal mortgage offer for a 5 year fixed mortgage on 90 pc ltv with Nationwide. Following survey, we are planning to negotiate money off the price due to damp found which will cost £2500 to remediate (I already know the seller will not do work themselves before completion) . Our solicitor informs us that we are responsible to notify Nationwide of any changes to sale price. Such a reduction would not change our ltv group.

What process happens after change in sale price? What options are available to us? What are the usual timings?

If Nationwide recalculated the offer, would it be based on today's rates or rates at application? My concern is that our mortgage rate no longer exists (it is now higher) -we wouldnt want to miss out on our good rate, making it ultimately much more expensive.

Many thanks for your help!

kingstreet

Reduced price means need for revised offer.

Existing product will be unaltered and offer will remain valid for six months from initial issue date.

If the repair was mentioned in the mortgage report & valuation, is Nationwide going to hold a retention? If it does, you'll have to increase your deposit to complete the purchase, then get the money released when the work is done.

I hope you got an independent surveyor to look at the timber and damp, and not a contractor who stands to benefit from work needed. You'd be surprised at the number of un-needed damp courses installed in this country when a property changes hands.

michaels

We recently negotiated a price reduction and the mortgage company just had to send out a revised offer which took a couple of days; it should be noted that even though they had agreed the initial valuation the mortgage percentage was based on the lower of valuation or purchase price.