Change in Purchase price

22copperfield

Hello MSE

I could not find any clear answer to our situation. Would be grateful for any advise.

We have been offered our full mortgage amount by halifax and ours was approved on 31March (pre MMR ). We are due to exchange on 9th May and complete on 22nd. The building survey showed it needs a small work on the wall of the independent garage. Rest of house is fine. As time is of essence, vendor has agreed to reduce the purchase price by £1000. It doesn't in itself lessen the valuation as it came back upto 425000. Purchase price 412500 85 %LTV.

Our question :
1. will we have to make a new application for the revised lesser amount and will they be assessing under new MMR guidelines?
We don't want to push back and delay the completion.
2. Can we negotiate a cashback on completion if agreeable by both solicitors , as I am worried it will take longer for us to get a revised offer from halifax during this busy post MMR time?
3. Do we need to let the lender know if the purchase price is reduced by £1000? We don't want to fraud anyone.

Thanks

Wh05apk

This will need to be declared whichever way you do this, and it will be classed as a "material change" and so therefore will need to re-assessed under MMR rules, it shouldn't make any difference with regards the lending decision, but may mean they need payslips etc if they didn't before, there will also be a time delay.

Dave_the_Ginger_Cat

1) your bank will tell you
2) This is often seen as an attempt to manipulate figures, and is likely to attract more undue attention than standing over your file with a big arrow saying 'look at me'
3) You have to. Your conveyance should not let you exchange without it being right.