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First Mortgage

riderross
riderross Posts: 168 Forumite
in Mortgages & endowments
I have applied for a 124,200 mortgage with 10% deposit(13,800). Total 138,000.

Offer accepted was 135,000.

Is it okay to borrow more than what I am paying for the property. I have a mortgage in principle. And have already submitted by full application.

Thanks in advance :)

Comments

  • kingstreet
    kingstreet Posts: 39,350 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    No. The reduced purchase price will have to be reported to the lender and the mortgage amount reduced accordingly.

    It's the lower of 90% of the purchase price or the valuation.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • amnblog
    amnblog Posts: 12,771 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    No it is not.


    Your maximum lending will now be £121,500.


    Unless your lender offers a 95% product on which they will accept you - this will cost you more but may enable you to borrow £128,250
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • riderross
    riderross Posts: 168 Forumite
    Thanks for your replies. I have spoken the the mortgage company, and they have reduced the loan amount.
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