Negotiating new price impacts mortgage offer?

[dinkydino123]

Hello! We are considering renegotiating our purchase price due to something that has come up from the survey. It will be about £2k. If we go ahead, we will need to get a new mortgage offer. Does anyone know if the bank is likely to honour the deal/rates that were agreed initially? Interest rates have gone up since we got our mortgage offer so if we have to take a new mortgage out at higher rates it actually may not be worth it for the sake of £2k...
Thanks!

I think for the sake of 2k I wouldn't renegotiate with the mortgage. You can use the 2k for improvements or moving costs. Or pay it back instantly.
Far easier than taking to the bank

WE had a situation similar to this. Our buyers asked for a 2k reduction (which was annoying because we had told that them the electrics needed doing!). We gave them a £1k reduction and asked our solicitor to hold the funds after the sale. They then released them to the buyers when they had the works done. We were in a hurry due to the stamp duty holiday and didn’t want the buyers reapplying for their mortgage.

I wouldn't change the offer for 2k.
Try and keep it as cash

Depends whether the LTV would be affected by the changes.

That's a good idea. I will ask our solicitor.

@negomi90

I think for the sake of 2k I wouldn't renegotiate with the mortgage. You can use the 2k for improvements or moving costs. Or pay it back instantly. Far easier than taking to the bank

Sorry, not quite sure what you mean. We are the buyers, looking to ask for 2k off due to some work that needs to be done on the house. Apologies if I've misunderstood your message!

She means keep the mortgage for the higher price and save the 2k for home improvements, or overpay it back on to the mortgage (depending on the overpayment terms of your product)

@Desmondo2021

She means keep the mortgage for the higher price and save the 2k for home improvements, or overpay it back on to the mortgage (depending on the overpayment terms of your product)

Ah I see. Thank you. Sorry FTB here 😂 I didn't realise that was an option. Our solicitor said we would need to notify the mortgage company.

You do need to mortify the mortgage company, but they may be happy to leave your offer as it is and allow you to borrow the original amount if you wish to.

Mortify?!!?! I meant notify! Not a Freudian slip I promise.

So your solicitor will need to notify the mortgage company either way. Your options will be to get them to draw up new paperwork based on the new figure (usually takes a few days), or keep the sale price as the same and the vendors will give you (via the solicitors) a cheque/transfer the £2k on completion as an allowance. With the first the stamp duty will be a little lower but both are above board.

Brilliant - thanks everyone for your help!