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Got Mortgage Approved Just before COVID19 now manage a 5% Discount in the Property
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JJRome
Posts: 29 Forumite

Hello, We are buying our first property. We found a flat in London that we really like and basically offer to pay asking price, We applied for the mortgage (15% deposit) and received the approval in Early March just before Covid19. We tried our best to postpone any decision but seller state agent want us to proceed otherwise he will put the property back to the market. So we reduced our initial offer by 5% and the seller just accepted. What is happening now?
Re Apply for a new mortgage with HALIFAX. in which case they would fast track our application and keep a similar deal regarding interest and deposit?
or Do we need to start a new application all over again with current limitations like 20% down deposit ?
Re Apply for a new mortgage with HALIFAX. in which case they would fast track our application and keep a similar deal regarding interest and deposit?
or Do we need to start a new application all over again with current limitations like 20% down deposit ?
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Comments
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You can’t just bank the rest. That would be fraud.0
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You can't just keep everything the same and 'bank the rest'. Halifax will need to know the purchase price is different regardless of what you end up doing.0
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Your Solicitor/ Conveyancer has a "duty of care" to protect 2 parties, their Client (as in "you") and any Finance Company involved such as a Mortgage Company, therefore there would have to declare anything such as a difference in the house purchase value regardless of whether you end up borrowing more or not.
Regards
Daniel0 -
THanks for the Replies, Now that is clear that I need to reapply. This will be a full new application all over again or some sort of amendment?0
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The bank will be told the purchase price and your LTV will change if you still wish to borrow the same amount of cash. There's no banking of the 'spare' cash.
Imagine a £100k house and you wanted to borrow £90k with a 10% deposit of £10k. All fine. Then you agree to buy the house for £90k instead.....the bank won't still let you have a £90k mortgage as that would be a 100% mortgage.0 -
JJRome said:THanks for the Replies, Now that is clear that I need to reapply. This will be a full new application all over again or some sort of amendment?
Craft target 2020 - 17/20 projects complete0 -
With a renegotiated lower price, it is lot easier. All banks need to do just change the purchase price in their system.
If price goes up, that's a whole new application then.Happiness is buying an item and then not checking its price after a month to discover it was reduced further.0 -
I have been involved in this situation. I was the buyer, and I got the price down after it became clear there were major works due to the block. Via the broker I told the bank the price had gone down by £4k, and I would be borrowing £4k less. It was approved without further fees, valuation etc.
So as long as you still meet the lenders current criteria, I believe it should be easy enough to get the mortgage lowered. Just allow plenty of time, banks are suffering staff shortages due to Covid too.1 -
movilogo said:With a renegotiated lower price, it is lot easier. All banks need to do just change the purchase price in their system.
If price goes up, that's a whole new application then.0 -
We were selling, about to exchange and then lock down happened. When we could restart the process, we alll expected to complete the following week, but buyer wanted a couple of £k off. This added three weeks to the process, and we exchanged/completed with 2 hours to spare before his mortgage offer expired, and we would have had to start all over again....0
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