Purchase price different to mortgage offer

Lancs1234

Hi, we are due to complete on friday (tomorrow) and our mortgage company have just queried the purchase price with the solicitor. We’ve ended up offering £157250 for the house but the mortgage offer is still staying purchase price of £156000. When we spoke to our mortgage advisor she said that’s not a problem as we were making up the extra £1250 with deposit and so the mortgage amount wouldn’t change. 

The extra doesn’t change the ltv bracket we are in, so I’m wondering is this going to cause an issue or will they just be checking it isn’t a typo?

moneysavinghero

Mortgage company need to know what price the house is selling for. They now have this and it doesn't affect anything about the mortgage as you said. They would have said something if it was a problem.

Don't worry about it. You should have let them know about the change, but they know now.

davidmcn

Your solicitor might want it amended, but I don't see it being an issue.

Lancs1234

The solicitor is fine with it being out slightly, was just trying to preempt if there would be a problem so late in the game caused by this! Thanks

kingstreet

I would have notified the lender and got a revised offer issued if you were my client. You don't just assume a lender will "be alright" with a material change.

Lancs1234

I did have my doubts but was assured that it would be fine by the mortgage advisor. The solicitor has just had an email back saying the price change was being referred to the underwriters to confirm they are happy with the price change. In one respect I do understand however there is no change in the lending so I can't see it being an issue? 

If it is held up now there is going to be one large complaint sent to the mortgage advisor. I work in a school and am completely unable to have time off, paid or unpaid, until the next holidays due to covid staffing ratios etc. 

FtbDreaming

My mortgage offer had an error with the purchase price.. was £83,000 with £9k discount and then £3300 deposit. Halifax worded it wrong several times and my solicitors wouldn’t accept it until it was spot on. I guess yours maybe more relaxed. 

Either way I hope it all goes through for you with no hiccups. Good luck

Lancs1234

Just to update, the underwriters amended the offer and sent it back before lunchtime, we've paid the deposit etc in full this afternoon and we had an email not too long ago confirming the funds were being sent in the morning so fingers crossed everything is now sorted and tomorrow is the day. 

Next time I'll make sure I push for everything to be perfect on the paperwork to avoid this unnecessary stress!