Re-Negotiating after the survey

rob_taylor1986

Hi All

I am a total novice on here so please bare with me, but me and my gf recently put an offer in for a house for £250k that got accepted. We had the full building survey done and found a bit of work that needed to be done so negotiated £4k off. What I wanted to check is, do we need to now redo the mortgage? The bank (santander) had their own valuation and valued it at £250k in its current condition, the mortgage was also accepted at £250k. So, obviously we would like to keep the mortgage at £250k and keep the excess £4k to put back into the house if possible.. Is this possible though?

Thanks,

Rob

ellie27

I am sure the purchase price will just change slightly, your LTV will change a tiny bit.

I expect your bank will just pay out 4k less than what was previously arranged.

HouseBuyer77

So, obviously we would like to keep the mortgage at £250k and keep the excess £4k to put back into the house if possible.. Is this possible though?

In a word, no.

The bank takes the lower of the purchase price and your valulation to calculate its LTV. So say you had a 10% deposit of £25k with the new price of £246'000 you'll need to pay a £24.6k deposit to keep the same LTV. A net of £400 extra for you.

You may be able to reduce the deposit further to free up extra cash but if you cross a LTV boundary (generally banks have products at 90%, 85%, 80% etc) this may require a whole new mortgage application.

I suggest you talk to your mortgage provider to find out if they'd accept a smaller LTV without a new application/product if you need to free up extra cash.

mrginge

rob_taylor1986 wrote: »

So, obviously we would like to keep the mortgage at £250k and keep the excess £4k to put back into the house if possible.. Is this possible though?

No its not.

Even if it was, borrowing an additional 4k over 25 years is not really the cheapest way to finance home repairs.