Reduce deposit if vendor reduces house price?

note3

Hi, current LTV is 85%. If vendor is agreeable to requested price reduction (survey issues) then if it takes us into a different LTV category can we simply reduce our deposit so we're then still within that 85% bracket or is it not as simple as that?

amnblog

Not sure what you mean. Whatever the new price, you need to put down 15% of that price as deposit.

note3

Sorry will try to explain better.

Our offer was accepted and mortgage offered. LTV 85%.
Survey has raised issues and we intend to try and negotiate reduced purchase price. If purchase price reduces by say 10k this will lead to a different LTV. If we therefore reduce our deposit (to maintain 85% LTV) do we then get new papers easily reissued with revised figures or will this trigger having to go through underwriters again?

note3

Haha it's ok...have just used an online calculator and even if they reduce by 10k the LTV reduces by less than 1% and still within 85% bracket so my question is null and void. Thanks anyway