Mortgage broker - ask me anything

K_S

Giggidy said:

We submitted a request to Natwest to reduce our initial mortgage offer by 5k, after a week of waiting and it being escalated by our broker. We received the revised offer with today's date, with exactly the same amount as before. They haven't reduced it by £5k, argggh! Does this mean that we have to go back again and go through the whole process again of waiting another week or can they just change the figure? This is so frustrating because our chain is on the verge of falling apart, our buyer's mortgage is close to expiring and we just wasted a whole week on this

@giggidy Is it a £5k reduction in purchase price or loan size?

ChemistDude

Giggidy said:

We submitted a request to Natwest to reduce our initial mortgage offer by 5k, after a week of waiting and it being escalated by our broker. We received the revised offer with today's date, with exactly the same amount as before. They haven't reduced it by £5k, argggh! Does this mean that we have to go back again and go through the whole process again of waiting another week or can they just change the figure? This is so frustrating because our chain is on the verge of falling apart, our buyer's mortgage is close to expiring and we just wasted a whole week on this

Why are you letting it hold up your deal?! Just complete the purchase and then pay off the £5K you don't need immediately.

kingstreet

Goldie57843367 said:

Had mortgage offer granted in May this year with Nationwide, the house purchase fell through. I have just seen a house couple days ago that I would like to offer on, can NatIonwide update the details to cover the new house? I believe offer runs out around 26th Nov, and would like to use the lower interest rate granted earlier if possible. 

Second question would be if this was feasible, would the exchange have to be complete before 26th Nov, would this in itself be feasible, given the short time frame?

any advice greatly appreciated 

No. It's a new app and new product, unfortunately.

Giggidy

K_S said:

Giggidy said:

We submitted a request to Natwest to reduce our initial mortgage offer by 5k, after a week of waiting and it being escalated by our broker. We received the revised offer with today's date, with exactly the same amount as before. They haven't reduced it by £5k, argggh! Does this mean that we have to go back again and go through the whole process again of waiting another week or can they just change the figure? This is so frustrating because our chain is on the verge of falling apart, our buyer's mortgage is close to expiring and we just wasted a whole week on this

@giggidy Is it a £5k reduction in purchase price or loan size?

It is a £5k reduction in purchase price

Giggidy

ChemistDude said:

Giggidy said:

We submitted a request to Natwest to reduce our initial mortgage offer by 5k, after a week of waiting and it being escalated by our broker. We received the revised offer with today's date, with exactly the same amount as before. They haven't reduced it by £5k, argggh! Does this mean that we have to go back again and go through the whole process again of waiting another week or can they just change the figure? This is so frustrating because our chain is on the verge of falling apart, our buyer's mortgage is close to expiring and we just wasted a whole week on this

Why are you letting it hold up your deal?! Just complete the purchase and then pay off the £5K you don't need immediately.

I am not holding anything up, our solicitor and broker advised that we need to inform the lender that the purchase price has reduced by £5k. If it was up to us we would have just kept £5k back from our deposit, and kept the morgage amount the same

K_S

Giggidy said:

K_S said:

Giggidy said:

We submitted a request to Natwest to reduce our initial mortgage offer by 5k, after a week of waiting and it being escalated by our broker. We received the revised offer with today's date, with exactly the same amount as before. They haven't reduced it by £5k, argggh! Does this mean that we have to go back again and go through the whole process again of waiting another week or can they just change the figure? This is so frustrating because our chain is on the verge of falling apart, our buyer's mortgage is close to expiring and we just wasted a whole week on this

@giggidy Is it a £5k reduction in purchase price or loan size?

It is a £5k reduction in purchase price

@giggidy In that case it might just be that the offer does not need to be updated as the new price might still be above NatWest's valuation. For example if the original purchase price was 205k, you were borrowing 100k and the NatWest valuation was 190k. And now the purchase price is 200k and you're still borrowing 100k, then the change is immaterial. 

As long as there is no change in loan size and the new purchase price is at least xxx (the NatWest valuation amount which should be mentioned somewhere on your offer Value of the property assumed to prepare this information sheet), there is no need to get the offer re-issued but NatWest does need to know. Once a change in purchase price is confirmed, I just send an email to NatWest notifying them of the new purchase price so they can update it at their end. They'll then send me an email saying the below which your broker may have received -

gjs6385

I’ve just added a new discussion and would be grateful if you could possibly take a look:

https://forums.moneysavingexpert.com/discussion/6394004/to-fix-or-not-to-fix#latest

bubby08

Hi K_S, I have a quick question I am over 3 years into a 4 year pcp agreement. I was wondering is their specific formula used by mortgage providers that calculate how much a finance agreement affects your lending ability. Any information on how finance agreements affect lending would be great. For the record I only have one small credit card which is paid in full each month and the PCP agreement. 

Thank you

K_S

bubby08 said:

Hi K_S, I have a quick question I am over 3 years into a 4 year pcp agreement. I was wondering is their specific formula used by mortgage providers that calculate how much a finance agreement affects your lending ability. Any information on how finance agreements affect lending would be great. For the record I only have one small credit card which is paid in full each month and the PCP agreement. 

Thank you

@bubby08 It'll be factored in as a committed monthly outgoing based on the contractual monthly payment. Just play around with a couple of lender affordability calculators to see what effect it has on your borrowing if any.

bubby08

@k_S Thanks K_S, Ok so in lending terms the monthly repayment is the figure calculated not the total value of the finance agreement ?

and if the repayment is factored into general standard monthly outgoings, is there a ration of earnings bs expenditure that lenders look for?