Urgent mortgage offer question
Discussion
We are due to exchange on sale/purchase today.
Last night our solicitor dropped a bomb on us and said she wants written confirmation from our lender that they know we are paying more for the property than the mortgage valuation states.
Sale price is £X
Mortgage valuation is £X - 4.2%
LTV in the offer is 72.5%
We have a full 10% deposit. Equity in our sale more than covers the rest.
Her partner has said it's all fine. She's saying she wants written confirmation from the lender (HSBC)
This feels massively cautious and I don't see why the lender should care. If she wants written confirmation that will take days and put everything at risk.
Views?
Last night our solicitor dropped a bomb on us and said she wants written confirmation from our lender that they know we are paying more for the property than the mortgage valuation states.
Sale price is £X
Mortgage valuation is £X - 4.2%
LTV in the offer is 72.5%
We have a full 10% deposit. Equity in our sale more than covers the rest.
Her partner has said it's all fine. She's saying she wants written confirmation from the lender (HSBC)
This feels massively cautious and I don't see why the lender should care. If she wants written confirmation that will take days and put everything at risk.
Views?
Edited by aspender on Friday 10th June 09:57 to remove specifics
Edited by aspender on Friday 10th June 13:10
I’m no legal expert but she’s your solicitor so I would expect you to be able to tell her it’s unnecessary and you are happy to continue. I’m a bit curious about the partner comment though?
To even let you know this close to exchange is also pretty bad form.
I guess you could always try and get an email today from HSBC but that would worry me about potential for creating a problem that doesn’t exist - I guess in reality you wouldn’t get said email today anyway.
If it were me I’d be instructing her to just continue and get exchange done given it’s not until completion that any mortgage is handed over and as you say that’s a modest LTV in the scheme of things.
To even let you know this close to exchange is also pretty bad form.
I guess you could always try and get an email today from HSBC but that would worry me about potential for creating a problem that doesn’t exist - I guess in reality you wouldn’t get said email today anyway.
If it were me I’d be instructing her to just continue and get exchange done given it’s not until completion that any mortgage is handed over and as you say that’s a modest LTV in the scheme of things.
I am not sure I understand.
Surely the mortgage company is already aware of these things given the application form and the valuation survey that they would have instructed? And I would think they only 'care' if the LTV is affected (given they will calculate the LTV from their valuation and not the purchase price).
Doesn't your mortgage offer contain the purchase price?
Surely the mortgage company is already aware of these things given the application form and the valuation survey that they would have instructed? And I would think they only 'care' if the LTV is affected (given they will calculate the LTV from their valuation and not the purchase price).
Doesn't your mortgage offer contain the purchase price?
alscar said:
I’m no legal expert but she’s your solicitor so I would expect you to be able to tell her it’s unnecessary and you are happy to continue. I’m a bit curious about the partner comment though?
To even let you know this close to exchange is also pretty bad form.
I guess you could always try and get an email today from HSBC but that would worry me about potential for creating a problem that doesn’t exist - I guess in reality you wouldn’t get said email today anyway.
If it were me I’d be instructing her to just continue and get exchange done given it’s not until completion that any mortgage is handed over and as you say that’s a modest LTV in the scheme of things.
The OP might be paying her, but she has a duty of care to protect the lenders interest so is just covering her backside.To even let you know this close to exchange is also pretty bad form.
I guess you could always try and get an email today from HSBC but that would worry me about potential for creating a problem that doesn’t exist - I guess in reality you wouldn’t get said email today anyway.
If it were me I’d be instructing her to just continue and get exchange done given it’s not until completion that any mortgage is handed over and as you say that’s a modest LTV in the scheme of things.
It's normal to require this, just sloppy to request it at this late stage.......
CharlesElliott said:
I am not sure I understand.
Surely the mortgage company is already aware of these things given the application form and the valuation survey that they would have instructed? And I would think they only 'care' if the LTV is affected (given they will calculate the LTV from their valuation and not the purchase price).
Correct - the purchase price was clear to them and for example is used in the illustration produced by them prior to the offer process.Surely the mortgage company is already aware of these things given the application form and the valuation survey that they would have instructed? And I would think they only 'care' if the LTV is affected (given they will calculate the LTV from their valuation and not the purchase price).
CharlesElliott said:
Doesn't your mortgage offer contain the purchase price?
No. From the UK finance lenders handbook
6.3Purchase Price
6.3.1The purchase price for the property must be the same as set out in our instructions. If it is not, you must tell us (unless we say differently in part 2).
From a lenders point of view, it won't really matter as will already be aware but the solicitor will be following the above so have to report it.
As Sarnie said, really should have been picked up earlier but if lender is aware of how close to completion you are then will be dealt with beforehand.
6.3Purchase Price
6.3.1The purchase price for the property must be the same as set out in our instructions. If it is not, you must tell us (unless we say differently in part 2).
From a lenders point of view, it won't really matter as will already be aware but the solicitor will be following the above so have to report it.
As Sarnie said, really should have been picked up earlier but if lender is aware of how close to completion you are then will be dealt with beforehand.
Edited by Killer2005 on Friday 10th June 11:38
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