Mortgage retention question

mh_ww

Hi all,
Last week we were told that a retention had been placed on our mortgage offer of 10k. Our original offer is 180k at 90 LTV. Our broker said the options provided were to obtain the information requested by the valuer to remove the retention (and a list of some of the things found), proceed with the retention as a condition of the mortgage, or reduce the loan amount to 153k (essentially 90% of 170k instead of 180k).
We decided to try and reduce the offer on the house and increase our deposit, and we managed to reduce to 173k, and find extra funds to cover the deposit shortfall.
My question is, seeing as we are taking the reduced loan amount does the works identified in the retention still form part of the offer? Or as we are taking the lower loan amount does it no longer apply? Apologies if it seems obvious but I want to make sure there is nothing we are missing.

K_S

@mh_ww Original purchase price was 180k with a 90% mortgage. Mortgage offer came back with a retention of 10k, you negotiated the price down to 173k (loan down to 153k) and have funds to make up the excess.

So if that is the route you choose to take, your broker now has to submit a change in the purchase price and update the corresponding changes.

The bank *should* then come back with an offer without a rentention, but it doesn't happen automatically.

Good luck, I can see your application has been going on for a while!

mh_ww

K_S said:

@mh_ww Original purchase price was 180k with a 90% mortgage. Mortgage offer came back with a retention of 10k, you negotiated the price down to 173k (loan down to 153k) and have funds to make up the excess.

So if that is the route you choose to take, your broker now has to submit a change in the purchase price and update the corresponding changes.

The bank *should* then come back with an offer without a rentention, but it doesn't happen automatically.

Good luck, I can see your application has been going on for a while!

Exactly, glad I somewhat explained it in a way someone could understand! I think I just felt a bit worried that something could still come back to bite us that I or broker hadn't realised. That's reassuring, we'll see what they say then!