New MMR rules, advice please

lspeers

Hello all.

In desperate need of advice, we are 4 weeks from completion and our lender has undervalued the property by £12000 under old lending criteria we could just ask vendor to reduce by that amount but our lender is telling us that any change in LTV from sale agreed price will mean recalculated under new rules and due to new rules and childcare costs we will not Get enough.

Stressed !

kingstreet

Your only option would appear to be to pay over the surveyor's valuation for the property.

lspeers

<p>But wont that mean my mortgage offer being recalculated under new rules ?</p>

kingstreet

No. As long as the purchase price remains the same, the application should still be able to proceed.

The lender will lend based on the valuation though, so if you are borrowing 90% of the purchase price, this will be reduced to 90% of the valuation and you will have to make up the difference with increased deposit money.

TBH the only way you're going to resolve this is by talking to your own lender. Two days into MMR, there is no industry standard way of dealing with such an issue.

lspeers

Thanks, these new rules seem a mess, can't understand why they did not implement 3 month buffer zone or such pre 26th and after. The LTV will be 50/50 of the purchase price (or was beforehand)