Mortgage valuation under agreed price

[Tulips2lips]

So wise mumsnetters, what would you do?

Agreed purchase price: 550k
mortgage valuation 530k with a 10k retention on some remedial works.

The lower valuation changes our LTV band so mortgage rate slightly higher.

Do we
a)suck it up and either pay the higher mortgage rate/ borrow slightly less to keep same rate?
b)renegotiate with (what we be) an unimpressed vendor? If so, how much??
c)walk away?

Thanks!

Depends on your negotiating power.

I'd got for B first. Price are stabilizing / falling.

Then you need to think about if you want/can do A or C.

The vendor will have the same issue with the next buyer, so start with B.

B first, if you don't ask you don't get. Be prepared to share an extract from your survey report if you want to strengthen your negotiating hand. It's very common to do this in that situation (I used to work in the industry) Depending on the work that needs to be done you could always suggest either a reduction to £530, or they reduce to £540 and carry out the remedial works prior to exchange? Shows willing on your part...

If they don't agree, A or C depends on how much you like the house and what the alternatives available for sale are, I've seen both happen.

OK, thanks. I'll put plan B in play today then. fingers crossed.