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Negotiating a lower purchase amount than my mortgage offer
K123456789
Posts: 7 Forumite
Just say I have received by mortgage offer letter.
If I manage to reduce the purchase price with the vendor, what does this mean to the offer?
Would I need to go through the application process again or do they simply change the offer letter?
The deposit will stay the same so this is only reducing the amount to be borrowed.
If I manage to reduce the purchase price with the vendor, what does this mean to the offer?
Would I need to go through the application process again or do they simply change the offer letter?
The deposit will stay the same so this is only reducing the amount to be borrowed.
0
Comments
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Depends on how much the reduction is.
If it's for a relatively small amount, say £500-£1000, then it will probably be classified as an allowance, and the solicitor will not need to notify the mortgage lender.
If the amount id larger, say £10,000, then the solicitor will notify the lender and a new mortgage offer will need to be produced, although it is highly unlikely you will go through the application process again.0 -
You need to report the revised purchase price to the lender.
A new offer will be issued. If the loan to value will be affected enough to take you into a new banding, you may have to choose a new product.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.0 -
Probably up to £1500 max0
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