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How does renegotiated house purchase price affect mortgage?

Hi, I'm in the process of renegotiating the purchase price after a couple of inspection reports came in, but I already have the mortgage approved for the original price. With a lower purchase price, I would still borrow the same sum from the lender and my deposit would remain in the same percentage bracket of the price. Is this a long/difficult procedure? Thanks!

Comments

  • london21
    london21 Posts: 2,201 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    Your mortgage advisor would need to make amendments.
    Should not be a long process if LTV remain in the same bracket etc.

    Best to contact your lender. 
  • When this happened to me I went ahead and borrowed the agreed amount.
  • KiKi
    KiKi Posts: 5,381 Forumite
    Part of the Furniture 1,000 Posts
    edited 3 February 2022 at 5:29PM
    FataVerde said:
    Hi, I'm in the process of renegotiating the purchase price after a couple of inspection reports came in, but I already have the mortgage approved for the original price. With a lower purchase price, I would still borrow the same sum from the lender and my deposit would remain in the same percentage bracket of the price. Is this a long/difficult procedure? Thanks!
    This happened to me.  Depending on how much lower the offer is, and depending on whether it changes the LTV, the lender may need to re-process the application and reissue the mortgage, or they may be happy to just agree to change it.  My lender was happy to change it, but it was only 5k less, and the LTV was the same.  You need to let your lender know ASAP, so they can organise for it to be changed, and let your solicitor know so they know to expect the change in paperwork.  I was advised a change could take up to 5 days, and it took 3 in the end.

    HTH
    ' <-- See that? It's called an apostrophe. It does not mean "hey, look out, here comes an S".
  • When this happened to me I went ahead and borrowed the agreed amount.

    Was there much difference?
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