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Worried! Service Charge!
FTBTom
Posts: 14 Forumite
I am buying a flat that the estate agent advertised as having a service charge of £100 PM. I have a mortgage offer based on this. It turns out the service charge is actually £150 PM. I am borrowing close to the maximum the lender would lend. My solicitors have now informed my lender of the actual service charge. Is this likely to screw up everything? If it does is there any come back with regards to the incorrect information by the EA? 
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Comments
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They will have to take it into account for affordability unfortunately you will have to wait for an underwriter to decide if you can cover the extra based on current affordability or if they reduce the maximum loan amount and you would have to cover the difference yourself.
In terms of the EA wrongly advertising the service charge you could log a complaint but this won't change anything in terms of the outcome of the underwriters decision.0 -
They will take it in to account for the purposes of affordabilityI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
Hopefully the lender gives the green light. I could probably increase the deposit slightly, is there a way I can work out how much more of a deposit would offset an extra £50 in costs?
If this all falls down would I have a claim against the EA for the costs I have incurred so far?0 -
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How do you do checks before hiring a solicitor and thus incurring costs?0
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Unless you're doing your own conveyancing, you wouldn't.0
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Its a tough one but there is likely to be no claim against the agent. Who is the lender?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
Santander is the lender.butterflybook wrote: »Its a tough one but there is likely to be no claim against the agent. Who is the lender?0 -
I can 100% tell you an increase in service charge will be reviewed by underwriting to make sure it still meets affordability0
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Have you gone through a broker or direct to Santander when your mortgage was originally underwritten there would of been a section noted by the UW with how much you had as disposable income see if you can phone your MA and ask this or if Santander phone them directly and ask might put your mind at ease0
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