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UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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Would like to Gazunder and borrow less from Bank after having

Customer Question

Would like to Gazunder and borrow less from Bank after having arranged to exchange and complete on 16/5/13

Problem: revised mortgage offer will take too long. Buyer wants quick sale. funds with solicitor already

Offer accepted for 500 000 in a corporate sale 2 months ago.
property valued 500 000
Mortgage offer approved
Mortgage deed signed
Mortgage and funds cleared with solicitor today - ready to exchange and complete on Friday.

Solicitor representing me and bank

The seller ( bank) is under pressure from the client and will accept less for a quick sale. The problem is that with the new MMR rules, the process or re-appling for the mortgage for a new agreed fee of 474000 will delay the sale and the seller is only happy to accept 475000 within 2 days of 16/5/14. I was aiming to exchange and complete on the same day hence all the preperation

Is it too late to gazunder at this stage ? The proposition is it would be in my lenders interest and my interest to buy this house for less. Could my solicitor have difficulty sending back the 26 000 saved after completion and I mantain my LTV borrowing at 90 % as applied. Before I tell my lawyer that the vender has agreed a lower price, I need some advice if the bank could accept this ? Or I risk loosing the property if the bank refuses and wants its funds returned.

Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.

UKSolicitorJA : Hello
UKSolicitorJA : You are fine to inform your lender that the vendor has actually agreed to accept a lesser purchase price and that you will accordingly be requiring a lesser mortgage
UKSolicitorJA : it will not be classed as a new mortgage as it is merely a revised lending figure, the mortgage and everything else remains the same other than a small reduction in the mortgage amount
UKSolicitorJA : you should inform your solicitor and the bank ASAP
UKSolicitorJA : I do not see any reason why the bank would want to pull out of the mortgage as long as a valuation was done and the original amount of £500K was reflected as the value of the property
UKSolicitorJA : can I help further?