Amend mortgage offer to lower priced property

BertieN

Hi all. I am after some advice. We recently got a mortgage offer but due to chain breaking the property is no longer available. We have since chosen a different one (both properties are new build), which happens to be of a lower price (10% lower). Besides the obvious second survey, what else needs to happen? Clearly our affordability won't be an issue.

In general should I expect this to be a full application from scratch or is it just a matter of surveying and issuing an amended offer? I dread the prospect of going through the full process again, it is so stressful and long, not to mention the fact that I need to exchange on the new build in 3 weeks time.

Hope anybody can shed some light. 

Lorenzo94

Hi, it depends on the lender. I am more or less in your situation, and my broker submitted the amendment to Halifax, which has scheduled a new evaluation for next Thursday. The have said that if the evaluation is ok, they will just amend the current offer to reflect the new Property, but unfortunately the rate has to change to what it’s available at the moment (mine went up from 1.99 to 3.2).

BertieN

Wow, that's one hell of a hike in rate. But the fact that it's a straightforward swap of property details is encouraging.

By the way, the lender in question is Accord Mortgages. Had anybody experienced changing properties for a lower value one with them once offer had been made? 

Lorenzo94

Yeah I’d rather pay a bit more and eventually change for a lower rate than go through the hell of applying again!

BertieN

Well, good luck on Thursday, let me know how it goes 

cooky123

I had to change property due to downvaluation it was a case of change of property form and new valuation it took a further 3 weeks in total to offer hope it goes quicker for you 

Madhouse2_2

cooky123 said:

I had to change property due to downvaluation it was a case of change of property form and new valuation it took a further 3 weeks in total to offer hope it goes quicker for you 

Which lender is this with? 

BertieN

cooky123 said:

I had to change property due to downvaluation it was a case of change of property form and new valuation it took a further 3 weeks in total to offer hope it goes quicker for you 

Any chance that was Accord? 

amnblog

If your application is with Accord and the original application was not closed down you should be able to reduce the figures, keep the original rate, and get a valuation done on the new property.
If the original application was closed down you are looking at today's available rates.

Cscott139

BertieN said:

Wow, that's one hell of a hike in rate. But the fact that it's a straightforward swap of property details is encouraging.

By the way, the lender in question is Accord Mortgages. Had anybody experienced changing properties for a lower value one with them once offer had been made? 

Accord are pretty good and should maintain the previous rate. I have done this a few times for customers recently and the deal remained unchanged. Your broker will need to log in and update the application with the new property details. Of you received a free valuation as part of your deal you will not get a second one so you will probably have a valuation fee to pay. Ypur broker is best placed to confirm all this though.

BertieN

amnblog said:

If your application is with Accord and the original application was not closed down you should be able to reduce the figures, keep the original rate, and get a valuation done on the new property.
If the original application was closed down you are looking at today's available rates.

This is really encouraging. I'm honestly not that concerned about the hike in interest. I'm far more scared of going through the whole process of applying, credit report, etc. My file is not great, hence the worry. Already a couple of people saying Accord will not do a brand new application so hopefully it will be like that. My deadline with the builder to exchange is in 3 weeks so fingers crossed.

By the way, for anybody who may be interested, it took 7 weeks from Application to survey and a further 2 weeks for offer the first time. I'll update as soon as I hear from them on the new offer.