Mortgage Offer Slightly Under Offer Price Advice

anthonyha

Hi all, finally had my mortgage offer notification through today after a 13 week wait, so looking forward to moving to the next phase.
The only way to get my mortgage through was to slightly lower the mortgage amount to match maximum affordability. The difference is about £1800 on a 460k house. 
What are my options/tactics for when I speak to the EA in Monday?
I don't really want to negotiate as the sellers have been so patient with us. Is there a way to pay them the £1800? It's a 100% mortgage so no deposit being paid, or presumably I could add it to that.

davidmcn

anthonyha said:

Is there a way to pay them the £1800? It's a 100% mortgage so no deposit being paid, or presumably I could add it to that.

You make it a 99.6% mortgage and the £1800 is your deposit. Assuming you don't reduce the price.

anthonyha

davidmcn said:

anthonyha said:

Is there a way to pay them the £1800? It's a 100% mortgage so no deposit being paid, or presumably I could add it to that.

You make it a 99.6% mortgage and the £1800 is your deposit. Assuming you don't reduce the price.

Solicitor advices we cant do that. The mortgage offer and contract must match. 
So the seller needs to adjust the sale price to proceed.
Any creative methods to make up the difference outside of the property purchase?
Fixtures and fittings? Would I be stupid to BACS transfer the difference to persuade them to adjust the sale price slightly?

davidmcn

anthonyha said:

davidmcn said:

anthonyha said:

Is there a way to pay them the £1800? It's a 100% mortgage so no deposit being paid, or presumably I could add it to that.

You make it a 99.6% mortgage and the £1800 is your deposit. Assuming you don't reduce the price.

Solicitor advices we cant do that. The mortgage offer and contract must match. 
So the seller needs to adjust the sale price to proceed.

The price on the mortgage offer has to match the price you're actually paying. That doesn't mean you have to borrow the entire price.

If what you are saying is that the agreed price is £460,000, but the lender has valued it at £458,200, and won't lend you more than £458,200, and you have the £1,800 cash, I don't see what the problem is. You just tell the lender that's what you're doing, they amend the offer, and away you go. No nonsense with secret cash under the table deals.

rik111

100% mortgage ?!
Are you sure.....

davidmcn

rik111 said:

100% mortgage ?!
Are you sure.....

Yes, Barclays Springboard according to their other threads (requires somebody else to stump up a cash deposit for the first 5 years).

Crashy_Time

100% mortgage, someone else paying the deposit...in this economic climate? 

foxy-stoat

If you do not have the £1800 in savings then ask the people who are putting the deposit money in to increase it by £1800.

anthonyha

davidmcn said:

anthonyha said:

davidmcn said:

anthonyha said:

Is there a way to pay them the £1800? It's a 100% mortgage so no deposit being paid, or presumably I could add it to that.

You make it a 99.6% mortgage and the £1800 is your deposit. Assuming you don't reduce the price.

Solicitor advices we cant do that. The mortgage offer and contract must match. 
So the seller needs to adjust the sale price to proceed.

The price on the mortgage offer has to match the price you're actually paying. That doesn't mean you have to borrow the entire price.

If what you are saying is that the agreed price is £460,000, but the lender has valued it at £458,200, and won't lend you more than £458,200, and you have the £1,800 cash, I don't see what the problem is. You just tell the lender that's what you're doing, they amend the offer, and away you go. No nonsense with secret cash under the table deals.

Thanks, I think this is what i have been struggling to grasp. So presumably an advertised 100%, (or 90% for that matter) mortgage offer doesn't rigidly have to stay at that amount, it could reduce to 99.6% if i put some in myself at exchange?

davidmcn

anthonyha said:

davidmcn said:

anthonyha said:

davidmcn said:

anthonyha said:

Is there a way to pay them the £1800? It's a 100% mortgage so no deposit being paid, or presumably I could add it to that.

You make it a 99.6% mortgage and the £1800 is your deposit. Assuming you don't reduce the price.

Solicitor advices we cant do that. The mortgage offer and contract must match. 
So the seller needs to adjust the sale price to proceed.

The price on the mortgage offer has to match the price you're actually paying. That doesn't mean you have to borrow the entire price.

If what you are saying is that the agreed price is £460,000, but the lender has valued it at £458,200, and won't lend you more than £458,200, and you have the £1,800 cash, I don't see what the problem is. You just tell the lender that's what you're doing, they amend the offer, and away you go. No nonsense with secret cash under the table deals.

Thanks, I think this is what i have been struggling to grasp. So presumably an advertised 100%, (or 90% for that matter) mortgage offer doesn't rigidly have to stay at that amount, it could reduce to 99.6% if i put some in myself at exchange?

Yes, it's just an upper limit of the LTV percentage. Not sure why your solicitor doesn't understand it either!