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Purchase Price Decreased, Affordability Checks Again?
G-ra
Posts: 1 Newbie
Hi,
We have a mortgage offer from Santander to purchase a given property at a given price. This offer was extended to us in July and is still valid. For various reasons, our property purchase didn't go through in July (the seller backed out). However, now the seller is offering the house to us again, at price 5% lower than what we previously offered in July. I phoned my mortgage broker and he says Santander have to re-do the affordability checks since the decreased price represents a material change in the mortgage. Is this true? Do they really need to re-run the affordability checks? Seems bizarre that lowering the price would trigger this, especially given we have an offer with Santander at a higher price! Can anyone explain?
Thanks!
Gora
We have a mortgage offer from Santander to purchase a given property at a given price. This offer was extended to us in July and is still valid. For various reasons, our property purchase didn't go through in July (the seller backed out). However, now the seller is offering the house to us again, at price 5% lower than what we previously offered in July. I phoned my mortgage broker and he says Santander have to re-do the affordability checks since the decreased price represents a material change in the mortgage. Is this true? Do they really need to re-run the affordability checks? Seems bizarre that lowering the price would trigger this, especially given we have an offer with Santander at a higher price! Can anyone explain?
Thanks!
Gora
0
Comments
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Yes, because the amount you wish to borrow as a % of the property value ( LTV) may have changed.
If you have a healthy deposit it could actually work to your advantage and enable you to get a better product.0
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