Mortgage Limbo - Contingency Planning

annetheman

hi everyone, what strange times these are...

I've decided to press ahead with my planned FTB purchase, despite the recent market volatility/COVID-19/impending (probable) recession etc. This would be a long-term home for just me.

I haven't had feedback on my mortgage application yet and I'm thinking about what I will do in a worst-case scenario and would appreciate opinions - what would you do?

What happens if the lender comes back to offer less than you need for the flat that you love and have had an offer accepted on? 
Would you:
-ask another lender
-go for a cheaper property (i.e. in the same development but smaller unit without parking...)

What if you go with another lender if the above happens?
Should you:
-ask for the same amount 
-pull out of the purchase, save for 2 months and hope the flats don't go, increasing deposit by a few thousand

Perhaps the banks will not want to lend anymore because they foresee a recession incoming?
I work in pharma, so doubt COVID-19 would really affect the industry negatively.

Thanks for any thoughts on this!

amnblog

There are two reasons the lender may not offer enough.

1. The Lender considers your requirement outside of your affordability
YOU WOULD CHECK THIS PRIOR TO MAKING AN OFFER

2. The property valuation comes in short.
YOU WOULD RENEGOTIATE THE PRICE. PUT IN SOME EXTRA CASH. OR WALK AWAY