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Need less mortgage than I've been offered - what happens to difference in funds?
Petejeveritt
Posts: 1 Newbie
Hi everyone,
Got a question about the mortgage I've been offered.
My wife and I are due to complete on our new house in April. We have been approved and offered a mortgage for 70% of the new house value - the rest is coming from the capital we have in our current house.
As completion has been delayed, this means we have now paid more off our existing mortgage and therefore technically need less than the amount we've been offered to buy our new house.
My question is this - on completion can we still get the loan for the full 70% and then be paid back the extra capital we now have (it would certainly help with renovations to the new place!), or will the solicitor only get the balance from the bank that we require (I.e. Making the mortgage smaller)?
Any thoughts? I've been searching online and all I can find is stuff surrounding negative equity, which won't affect us!
Thanks!
Pete.
Got a question about the mortgage I've been offered.
My wife and I are due to complete on our new house in April. We have been approved and offered a mortgage for 70% of the new house value - the rest is coming from the capital we have in our current house.
As completion has been delayed, this means we have now paid more off our existing mortgage and therefore technically need less than the amount we've been offered to buy our new house.
My question is this - on completion can we still get the loan for the full 70% and then be paid back the extra capital we now have (it would certainly help with renovations to the new place!), or will the solicitor only get the balance from the bank that we require (I.e. Making the mortgage smaller)?
Any thoughts? I've been searching online and all I can find is stuff surrounding negative equity, which won't affect us!
Thanks!
Pete.
0
Comments
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The mortgage offer still stands. The excess cash is yours to do with as you wish.0
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As Thrugelmir says, the lender has committed to a certain amount, on completion your solicitor will do the sums and you'll get a cheque or bank transfer for whatever is left once everything has been paid, including their fees, other fees such as stamp duty, land registry etc.0
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This depends on you. In certain cases, the mortgage lender can just send a new mortgage offer letter, if the difference is only small. For what is only a small difference ( probably) I'd leave it as it is, to avoid extra hassle/ paperwork, then make an overpayment once the mortgage is completed ( most mortgages allow for a certain % overpayment) hope this helps.0
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pinkcheshirecat wrote: »This depends on you. In certain cases, the mortgage lender can just send a new mortgage offer letter, if the difference is only small. For what is only a small difference ( probably) I'd leave it as it is, to avoid extra hassle/ paperwork, then make an overpayment once the mortgage is completed ( most mortgages allow for a certain % overpayment) hope this helps.
You missed the OP's point that they don't want a smaller mortgage.0
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