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Changing mortgage terms before buy closes

Hi. I am a first new buyer. In the process of buying a house with my partner. Mortgage agreed by bank, offer accepted by seller we are now 8-10 weeks away just waiting for the solicitors etc documents to finalise. 

On the first discussion with the bank we offered above the 10% deposit, for about 4000 pounds more than what we had to pay for 10%. This doesn’t give us any financial benefit so thinking now to take that back. On contact it even says we could’ve technically borrow that 4000 more. 

Broker said that won’t be a problem but it will have to go to underwriter again. Any idea what underwriter would check differently or is it just a formallity. Though I don’t think there should be any other flags now like we haven’t taken any loans meanwhile or anything like that, circumstances are the same, just don’t want it to fall at this point when we re so close. 

They did also just call us to say the interest has gone down slightly, so am I right to assume that will go to underwriter too anyway and taking some deposit back won’t make a difference. 

Comments

  • Hoenir
    Hoenir Posts: 1,291
    First Post Name Dropper
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    edited 12 February at 5:22PM
    Lumi23 said:
    This doesn’t give us any financial benefit so thinking now to take that back. 
    If you borrow more then over the term of the mortgage you'll end up paying far more interest. The £4k also has to be repaid. There's no free lunch. 
  • I'm 11 days away from completing and.my.isrtnee and out mortgage broker have changed the mortgage several times due to Santander keeping coming up with better rates. It's not caused any issues and a quick reissue of paperwork and to the solicitors portal by the lenders is all it has taken. 
  • Lumi23
    Lumi23 Posts: 2
    First Post
    Newbie
    Hoenir said:
    Lumi23 said:
    This doesn’t give us any financial benefit so thinking now to take that back. 
    If you borrow more then over the term of the mortgage you'll end up paying far more interest. The £4k also has to be repaid. There's no free lunch. 
    Thanks Hoenir. Yes I probably said it the wrong a as I know that there is interest on that. But thinking that will do monthly overpayments so think in the long term might not make as big of a difference. I will check out worth doing some calculations you re right. But more thinking that house move furniture etc is expensive so could do with that now. Thank you for your answer 
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