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Reducing My Offer - Mortgage Implications?

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We've just gotten our building survey back - and as usual, lots of doom and gloom about small little things, but there were some big issues too, one which we didn't anticipate before. In hindsight, we should have spotted it ourselves.

- The plaster on many of the walls in the house are old - and as we plan to rip out the existing wallpaper and redecorate, will probably mean replacing the plastering. This seems to be a house-wide problem - so £2k allocated for that now.

- Also the floor in one of the hallways seems to be sloping ever so slightly - something we didn't spot - but the surveyor picked up on. Remedying it might mean replacing the floorboards or putting a layer on top to make it level.

- One of the sash windows needs changing as the lock as been broken and the wooden frame is not in a very good state.

All in all, we're thinking of asking for a few grand off our asking price. But our mortgage is with ING, and so far they have been extremely slow throughout the entire process.

My question is, if we manage to successfully negotiate a lower price, and tell ING that we need a smaller mortgage, will it have to bounce through their underwriting hell of a process again? Or, since they have already issued a mortgage offer, would it be an admin job to lower the price and mortgage amount? I'll be keeping to the same LTV and product.

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We've just gotten our building survey back - and as usual, lots of doom and gloom about small little things, but there were some big issues too, one which we didn't anticipate before. In hindsight, we should have spotted it ourselves.

- The plaster on many of the walls in the house are old - and as we plan to rip out the existing wallpaper and redecorate, will probably mean replacing the plastering. This seems to be a house-wide problem - so £2k allocated for that now.

- Also the floor in one of the hallways seems to be sloping ever so slightly - something we didn't spot - but the surveyor picked up on. Remedying it might mean replacing the floorboards or putting a layer on top to make it level.

- One of the sash windows needs changing as the lock as been broken and the wooden frame is not in a very good state.

All in all, we're thinking of asking for a few grand off our asking price. But our mortgage is with ING, and so far they have been extremely slow throughout the entire process.

My question is, if we manage to successfully negotiate a lower price, and tell ING that we need a smaller mortgage, will it have to bounce through their underwriting hell of a process again? Or, since they have already issued a mortgage offer, would it be an admin job to lower the price and mortgage amount? I'll be keeping to the same LTV and product.

The quickest way in getting the offer reduced, is once the amount take off has been agreed - ask your solicitor to ask for the amount as an 'Allowance for Works' as means you don't have to go through the whole rigmarole of the bank of getting a new mortgage offer (which you would potentially have to do).

Basically means the solicitors take the amount out of how ever much you're borrowing from the bank and give you the cash before giving the rest to the vendor [i.e. nothing changes as far as bank is concerned - so faster].

That's what we've done.

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The quickest way in getting the offer reduced, is once the amount take off has been agreed - ask your solicitor to ask for the amount as an 'Allowance for Works' as means you don't have to go through the whole rigmarole of the bank of getting a new mortgage offer (which you would potentially have to do).

Basically means the solicitors take the amount out of how ever much you're borrowing from the bank and give you the cash before giving the rest to the vendor [i.e. nothing changes as far as bank is concerned - so faster].

That's what we've done.

would that work if you are playing hardball and drop your offer by £30k just before exchange? I cant see the solicitor agreeing to take a large sum from the mortgage money borrowed from the bank and just hand it over to you.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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