Downvalue and mortgage payments

antony2395

la531983 said:

antony2395 said:

la531983 said:

8antony2395 said:

la531983 said:

Erm no, you pay your 22k deposit and NW lend you 148k.
That totals 170k which is the asking price. 

Simple as that. Nothing has changed 

You are over complicating it for some unknown reason. 

They have not replied to us if they actually accept that or not... only wish our mortgage advisor was a little bit more helpful and would reply to our emails with some clarification

Well that's up to the vendor. If NW are happy to lend you 148 though it should be fine for you to pay a 22k deposit and proceed.

Nothing has changed, you were happy to pay 170k before the valuation, clearly. 

yes of course, we are ok with 170k. we would only need the 5k extra if they say they will not offer a mortgage for 170 but only 165 right? and in that case the loan would be 143k and deposit 27k so in total 170k again as before.

Read the below, slowly:

Before the valuation - NW would lend you £148k and you pay 22k to make up £170k

House valued at 165k

Vendor puts it back up to 170k

After the valuation - NW would lend you 148k and you pay 22k to make up £170k (although you need to check they are still happy to do so, don't see why though) 

I can't explain it any easier than that.

If you have extra money sloshing around I would pay as big a deposit as possible, though. 

I 100% get what you are saying. English is not my first language but I'm doing pretty good at it. Why I went on a bit of a rant is because the advisor asked if we were willing to provide more for the deposit to make up the difference, we said yes, and to speak to the lender about it and asked how much would be the payment with the 27k deposit instead of 22k and the advisor just replied that "the monthly repayments will remain the same", not "the monthly repayments will stay the same, extra deposit is not required" so that I have that in writing and my peace of mind.

 Generally they are not really replying to our messages so I am a bit frustrated. I am now waiting for their call to discuss about it and if they have received anything from the lender. 

la531983

If the lender is lending you 148k nothing will be changing.
You will just have to wait for an answer from NW.

If for some reason NW will only lend you 145k, you pay in 25k and then your payments will be lower. 
If they will only lend you 142k, you pay in 28k and then your payments will be lower again. 

And so on.

Personally you should be paying in as much deposit as you can but at the end of the day the total of your deposit and mortgage will STILL be 170k.

antony2395

la531983 said:

MWT said:

la531983 said:

I don't think the OP was confused about LTV, for some reason he thinks he has to pay more of a deposit, and therefore a smaller mortgage, because the vendor has ignored the valuation and added 5k to it. 

Which isn't the case. 

The reason to look at the LTV, is that is where an undervaluation is most likely to trigger a problem, as if they were applying for a 90% LTV product and the lower valuation made the LTV 91% then they would have had to increase their deposit as the amount the lender would be willing to advance would now be less than they had requested.

Luckily they were right on the margin, and just squeezed in below the 90% LTV, even £1k lower on the valuation and the story could have been different.

I agree but the OP is confusing himself here over something much more basic than this, so let's not confuse him even more! 

I am starting to get he point here, as I said I am a first time buyer and not really know the process, hence why I asked here! It is clearing up and will hopefully have a call with the mortgage advisor later today to discuss things further!

antony2395

la531983 said:

If the lender is lending you 148k nothing will be changing.
You will just have to wait for an answer from NW. 

Yup, got it! will update here once I have any more news.

MWT

Only one straight question needs to be answered, "have Nationwide agreed to lend the full £148k?"

antony2395

MWT said:

Only one straight question needs to be answered, "have Nationwide agreed to lend the full £148k?"

So, in the end, we got our mortgage offer today, was waiting on it to provide an update, they agreed to lend 143k and not 148k so the deposit from us will be 27k and the monthly payments will be less of course, were around 1035 and now will be 999 for the fixed term