Revised mortgage with higher LTV but same rate?

Cropstar

We're currently in the process of buying our first home.


We got an original mortgage offer based on the agreed purchase price which was at 90% LTV. Subsequently, due to work required, we've negotiated several thousand off the price.


We've had a revised mortgage offer from our bank. The amount they are lending us is unchanged which would mean our deposit payable falls by several thounsand and would take us into a higher LTV band. But the rate being offered is the same as we got originally.


Is this something we should raise with our solicitor/bank, or just accept it as the rate is agreed in the contract and so in a way, we're just lucky getting the same low rate but now into a higher LTV band?

[Deleted User]

Impossible to say if there has been an error unless you supply some numbers

Original price and deposit amount
new price and deposit amount

muhandis

As I understand it, you had an offer in place for borrowing X with a deposit which meant that X was less than 90% of the agreed sale price.

Now, with the discount in price, the borrowing figure remains unchanged and makes X more than 90% of the new sale price, thus taking you from 90% LTV to 95% LTV but with no change in interest rates, etc.

Given the substantial change in risk profile from 90% to 95% LTV (and corresponding interest rates), it seems unlikely that the bank will make such a mistake.

But if you are convinced that they have done as described above, in your place I would keep mum BUT make sure I have enough cash in hand to cover the possibility of the lender noticing the error during the long period to completion.