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House offer reduced by a small amount - can I reduce my deposit or does it have to be subtracted from the mortgage?

1 reply

QuakingQuiche · 23/03/2020 21:58

House offer reduced by a small amount - can I reduce my deposit or does it have to be subtracted from the mortgage?

Say a house is 100k and the best offer (in terms of minimizing the deposit I'd have to pay) I could get is 20k deposit + 80k mortgage

Say, now due to certain issues, the homeowners agree to reduce the house offer to 98k (reduction of 2k), can I take off the 2k from my 20k deposit or must it be taken off my mortgage?

When I checked using the affordability calculator of the bank I got the mortgage from, it seems I could have even got better deal (for the same house price e.g. 15k deposit + 85k mortgage) and so, the price drop by 2k makes it even more better in terms of reducing the deposit I'd need to pay.

Can someone tell me if I can get the figures redone with these favourable (deposit reducing, mortgage increasing) ratios if I've already got an approved mortgage but I've not started it yet as I was getting survey done, solicitor was doing searches, etc.

OP posts:
SuperMeerkat · 23/03/2020 22:50

They’re not dropping the offer by 10% though which is what you’re proposing to do by dropping £2k from the deposit. I’m not a mortgage adviser but i’d say it would come off the mortgage (but there’s nothing stopping you trying to lower the deposit)

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