FTB: What if I am £3000 short??

SnowDrop

Hello, apologies for the dumb question and thank you in advance for trying to help.

To cut the long story short, I am in possession of two separate Mortgage In Principle Certificates, one from my bank at £125k and one from an independent mortgage advisor at £123k.

The property I would like to buy can be mine for £140k. I do have 10% deposit (£14k), which means I need a mortgage for the remaining £126k - an amount slightly higher than what I am being offered in Mortgage in Principle documents.

Is my mortgage application likely to be denied because of this?

What are my options??

Has anyone been in a similar situation?

Your advice is much appreciated. Thanks again.

Jkbc90

Our DIP was £4K more than they were willing to lend us in the end. The seller dropped £2k and we paid another £2k. If your offer was the same as the DIP I guess your options would be seeing if the seller would drop the price or compromise or foot the shortfall yourself. Good luck

Jkbc90

Sorry I forgot to add, our mortgage wasn't declined but they came back with a lower offer and asked if we would be able to go forward with the new figure.

The_Real_Cheddar_Bob

speak to the seller. thats your only option if this is the only house you want

kingstreet

It can take us as many as ten affordability calculators before we establish maximum borrowing.

There is no way of knowing if what you have is the absolute maximum, or just the first ones your lender and your broker have done.

With which lenders do you have these certificates?

AnotherJoe

Do you also have the cash saved for SDLT,solicitors fees and miscellaneous fees ?

SnowDrop

AnotherJoe wrote: »

Do you also have the cash saved for SDLT,solicitors fees and miscellaneous fees ?

Yes, I have £1500 saved up in addition to 10% deposit. I believe this amount should roughly cover solicitor, stamp duty and other fees.

SnowDrop

kingstreet wrote: »

With which lenders do you have these certificates?

The lenders are my bank HSBC (£125k) and the independent mortgage advisor suggested Nationwide (£123k).

I believe my situation has improved since the applications due to salary increase.

SnowDrop

Jkbc90 wrote: »

Our DIP was £4K more than they were willing to lend us in the end. The seller dropped £2k and we paid another £2k. If your offer was the same as the DIP I guess your options would be seeing if the seller would drop the price or compromise or foot the shortfall yourself. Good luck

Was this due to property being valued at lower amount?
Or due to affordability?

kingstreet

SnowDrop wrote: »

The lenders are my bank HSBC (£125k) and an independent mortgage advisor suggested Nationwide (£123k).

There are lenders who will lend more than either/both of those two if necessary.

Ems08

I'd be slightly cautious with only having £1500 left over to cover Solicitors, Stamp duty ect, especially if you would be aiming to have a survey on the property (Home buyers report, building survey ect) depending on the property you are buying or get a mortgage where you have to pay booking and valuation fees (these can be up to £1000 with HSBC and then £250 for valuation)

You can secure mortgages without these but the interest rates are higher. Food for thought!