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Mortgage lending amount on revised offer

Am very confused and waiting to hear from broker but wondered if anyone had any advice! Fake numbers used below for ease.

Selling property for 210k- offer accepted last year
Buying property for 250k- mortgage offer received

My buyers following survey are lowering their offer to 200k which would need to borrow additionally on mortgage to make it work- fine from an affordability LTV perspective, but mortgage only valued property I am buying at 250k. 

Does this mean would not be able to borrow the extra?

Comments

  • Is there any equity due from the sale of your current property? It's a case of adjusting that as opposed to the mortgage, it's how much of the 250k you'd be paying versus how much if it was being paid off from money you gain after the sale of your property.

    We are currently buying and selling with a good chunk of equity from our house because of how much of our mortgage we'd paid off, if the price dropped by 10k it would just be adjusting how much of the mortgage I had to repay Vs the equity.
  • So say we will have 100k equity, and are borrowing 150k.
  • FlyMeSomewhere79
    FlyMeSomewhere79 Posts: 119
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    edited 6 February at 1:59PM
    So say we will have 100k equity, and are borrowing 150k.
    If the buyer of your house dropped the price they are willing to buy say 10k and that takes your equity down to 90k, what you'd then need is the mortgage increasing to 160k to borrow that £10k extra
  • Ah got it. Thank you so much! My head was exploding a bit haha
  • FlyMeSomewhere79
    FlyMeSomewhere79 Posts: 119
    First Post Name Dropper
    Forumite
    edited 6 February at 1:59PM
    Ah got it. Thank you so much! My head was exploding a bit haha
    No problem, I'm hopefully signing contracts next week and can't wait to hopefully get this buying and selling stress over and done with!!! 
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