Incorrect Purchase Price on Mortgage Offer

hughes1497

Hi everyone. So finally got my mortgage offer on Monday 17th August after application going in on 13th July! Only issue was the purchase price on the offer said £130k when we have paid £128500, something that my MA and solicitor spotted immediately and have reverted to Nationwide to update as apparently all the figures were put in correctly. I have been assured this won't be an issue and should be resolved asap. We have an entry date of September 11th (over 3 weeks away). From anyone's experience with the same situation, has this caused you any issues before? Is it relatively simple to rectify? Unfortunately I am a worrier so even though my MA/Solicitor have assured me it will be fine, I can't help but worry! It's one thing after another!

MovingForwards

If your broker and solicitor comments have not reassured you, and they know your financial circumstances / property purchase price etc, why would random strangers change how you feel?

Just have faith in the people working to sort this out.

hughes1497

That's very true! I just suppose seeing other people being in a similar situation when it works out gives me comfort.

[Deleted User]

In theory it will require a material change being one that might require being sent to the valuer to confirm they are happy to sign off on the changes.   Nationwide are currently taking about 2 weeks to review information at the moment so your timescales might be quite tight.    

[Deleted User]

Couldn't you have just left it as it was and use the difference for any home improvements etc ?

davidmcn

[Deleted User] said:

Couldn't you have just left it as it was and use the difference for any home improvements etc ?

Leaving it as it is would mean paying the vendor an extra £1500.

[Deleted User]

Yep, just realised what i'd been thinking ......

hughes1497

Thanks for the responses everyone. Based on the fact that we’re actually paying less for the house than what nationwide deemed it is worth, surely there shouldn’t be an issue getting the mortgage still? They were happy to give me a mortgage based on  £130000k so surely £128500 wouldn’t change this? 

HCIMbtw

davidmcn said:

[Deleted User] said:

Couldn't you have just left it as it was and use the difference for any home improvements etc ?

Leaving it as it is would mean paying the vendor an extra £1500.

Why would it? your bank issues the money and your solicitors handle the transfer to the seller which I would think is a separate transaction. As long as your solicitors don't transfer an incorrect amount the money you are not overpaying, you are just borrowing more and the extra borrowing would be in the OPs pocket. 

That said it just makes the transaction messy and is better to sort out. Should be no issues at all, the actual price is lower than the mortgage, just need to wait for admin to process and re-sign off. 

davidmcn

HCIMbtw said:

davidmcn said:

[Deleted User] said:

Couldn't you have just left it as it was and use the difference for any home improvements etc ?

Leaving it as it is would mean paying the vendor an extra £1500.

Why would it? your bank issues the money and your solicitors handle the transfer to the seller which I would think is a separate transaction. As long as your solicitors don't transfer an incorrect amount the money you are not overpaying, you are just borrowing more and the extra borrowing would be in the OPs pocket. 

The point is that the purchase price stated in the mortgage offer has to be the actual price being paid - so either you get the price in the mortgage offer fixed, or (more ludicrously) increase the actual price you're paying.