Adding deposit after mortgage offer

Croupier88

Hi every one,
This is my first post in this amazing, helpful forum.

Today I received the mortage offer by Natwest, for an amount of 304,000£ (applyed by broker)

The house price is 320,000. So I am just putting 5% deposit.
Due a parent's gift next week, I could add another 5% in order to get a better deal with 90% LTV.

Has anyone done this kind of thing? Could I have any kind of problem-delays now the official mortage offer has been done?


Thank you very much

[Deleted User]

You would need the mortgage offer reissuing, and they would want to go through the evidence of the gifted deposit. Your parents will need to confirm they have no interest in the property, it's not a loan etc.

It certainly won't make it any quicker.

Croupier88

Basically We got in our bank account all the funds to cover deposit and fees but we did not want to spend them all for the deposit.
This "gift" would be just a peace of mind for us, to buy extra stuff for the new house and to not leaving us with just few pouunds in the bank account.

Neutrinno

Yes it would certainly delay things. You would need to reapply for a different mortgage product and a new offer would need to be issued detailing the new rate, deposit etc. Would also then need parents to sign and return a gifted deposit letter for the lender.

Croupier88

I don't think I need any parent's letter because the money already own in my bank account cover all the costs for deposit and legal fees. I did not put straightaway 10% to not strech myself after the exchange, so I will use my parent's gift to buy something for my new house after I will move in.

The broker time ago told me it was possible before the exchange, but If they need to underwrite again my assets, reapply for everything maybe it's better leave all like this.

Thrugelmir

You could always use some of the money to make overpayments on the mortgage. Assuming you have a fixed term mortgage product. This will enable you to obtain a better rate at the next switch as you'll have a far better LTV.

poppy10_2

Thrugelmir wrote: »

You could always use some of the money to make overpayments on the mortgage. Assuming you have a fixed term mortgage product. This will enable you to obtain a better rate at the next switch as you'll have a far better LTV.

Assuming house prices stay static or rise, rather than falling
Also at this level of borrowing, remortgage fees may well eat a big chunk of the LTV