Incorrect mortgage advance?

Hamilton93

Hi,
I am currently in the process of buying my first house (ready to exchange!) & and i have a query around the figures on my completetion statement. It states that the Mortgage Advance = £190,980, however our mortgage offer was for £192,000 so i am slightly confused as to why the advance is lower than the mortgage offer, is there something i am missing?

Purchase price: £260,000
Deposit: £68,000
Mortgage offer: £192,000 + £995 fees added to the loan
Mortgage Advance: £190,980

If anyone can shed any light that would be a great help, thanks!

lincroft1710

I would suggest talking to your mortgage provider. They will be best placed to answer your query.

fullofcold

Hamilton93 said:

Hi,
I am currently in the process of buying my first house (ready to exchange!) & and i have a query around the figures on my completetion statement. It states that the Mortgage Advance = £190,980, however our mortgage offer was for £192,000 so i am slightly confused as to why the advance is lower than the mortgage offer, is there something i am missing?

Purchase price: £260,000
Deposit: £68,000
Mortgage offer: £192,000 + £995 fees added to the loan
Mortgage Advance: £190,980

If anyone can shed any light that would be a great help, thanks!

Does the offer definitely say £192k + fee's? The advance suggests 192k inclusive of fees and the tt fee for same day transfer deducted

Hamilton93

Quote taken from section 3. Main features of this loan;
"£192,000.00 plus £995.00 for fees that will be added to the loan."

Quote taken from section 4. Interest rate and other costs;
"Product Fee payable on completetion to Precise Mortgages. This fee is refundable if this loan is not taken out. You have chosen to add this fee to your Loan"

SallyDucati

Maybe whoever at the solicitors filled in the completion statement (which should include all the transactions including deposit) has just assumed the £995 & transfer fee would be deducted?  Worth checking with them?

davidmcn

SallyDucati said:

Maybe whoever at the solicitors filled in the completion statement (which should include all the transactions including deposit) has just assumed the £995 & transfer fee would be deducted?  Worth checking with them?

This. Lenders take inconsistent (and often confusing) approaches to describing what sums the solicitors will actually be receiving, and it may simply be the solicitors who have got it wrong (or in the event of doubt, playing safe as they'd rather have too much money for completion than not enough).

Hamilton93

I hope that is the case!
Waiting for a call back from the solicitors now!

[Deleted User]

If you are borrowing at the max of the ltv limits (85% with precise) some lenders add the fee to the loan by deducting it from the advance as otherwise it would take the loan above 85%.  

Pepper money do this and it caught me out not long ago