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Lowered Asking Price - Affect On Mortgage?
Glamazon
Posts: 8,401 Forumite
Hi
I am first time buyer - my partner and I found our dream home, got a decent mortgage rate from Lloyds TSB 4.98% (paid £4000 fee for it though) after a pretty trying time over valuations and them losing our application - we finally got the offer letter through :beer:
HOWEVER, we started to get cold feet with the market going the way it is - so we have managed to get the vendor to drop the price by £7000 and provide this as a gifted deposit - meaning we only need to find £11000 for deposit. What I want to know is how will this affect our mortgage?
Our solicitors say they have to inform the lender of a gifted deposit which I understand but I don't want to lose the rate from lloyds - they tried their hardest to lose our application so that they didn't have to give it to us!
Any advice would be most grateful.
I am first time buyer - my partner and I found our dream home, got a decent mortgage rate from Lloyds TSB 4.98% (paid £4000 fee for it though) after a pretty trying time over valuations and them losing our application - we finally got the offer letter through :beer:
HOWEVER, we started to get cold feet with the market going the way it is - so we have managed to get the vendor to drop the price by £7000 and provide this as a gifted deposit - meaning we only need to find £11000 for deposit. What I want to know is how will this affect our mortgage?
Our solicitors say they have to inform the lender of a gifted deposit which I understand but I don't want to lose the rate from lloyds - they tried their hardest to lose our application so that they didn't have to give it to us!
Any advice would be most grateful.
A very busy Yummy Mummy to a 1 year old gorgeous boy :smileyhea
Where does the time go? :think:
Where does the time go? :think:
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Comments
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Given the "fun" you have had with the application process, I would just enjoy the extra funds from your deposit, and try to repay these ones the mortgage is running, assuming you have no repayment charges. Assuming you are nearer to completion, so definitely not an idea to risk loosing the mortgage, or re-assessing it again. IMO0
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As far as I am aware C&G (Lloyds TSB) will only take a gifted deposit from a builder. It may well be that you have to use the lower the price and work out your new loan amount using a new full deposit.I am a Mortgage Adviser You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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As far as I am aware C&G (Lloyds TSB) will only take a gifted deposit from a builder. It may well be that you have to use the lower the price and work out your new loan amount using a new full deposit.
Yup - as I understand it, the gifted deposit is equivalent to a reduction in the agreed price. So your LTV is now expressed as a percentage of the price you've agreed LESS the gifted deposit. Put another way, take the deposit off the price agreed and the LTV is a percentage of the result.Warning ..... I'm a peri-menopausal axe-wielding maniac
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Ok so guess what C&G declined it!!!! They are being so obstructive with everything it's driving me crazy!
Does anyone know of any other way that we can get aorund this?
I need to exchange in next couple of weeks because we have to be out of rented accomodation by end of May - a new mortgage offer will take at least another 5 days.
Does anyone recommend Cashback on completion?A very busy Yummy Mummy to a 1 year old gorgeous boy :smileyhea
Where does the time go? :think:0
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