Approved mortgage amount amended

[Lake view]

Hi we got mortgage approval and placed a bid on a house. I hadn't heard anything from the bank and phoned our manager on Thursday he told me that the bank had received the valuation and had lower the amount they are willing to lend us, he said this is happening a lot lately and it was to do with a point scale in head office we fell marginally below which resulted in the offer being less than we needed.

This leaves us really really tight can I go back to the estate agent and explain to him what has happened. We cant afford the asking price now and need to reduce offer by 5K if we are to proceed is this allowed. I am shocked our loan offer was reduced we were using a lot of savings and not looking for the max amount.

 

[Leo]

We cant afford the asking price now and need to reduce offer by 5K if we are to proceed is this allowed.

You are certainly allowed to reduce your offer, assuming you have not signed contracts. Of course the vendor may decide to sell the the under bidder if their offer was within 5k of yours though.

 

[Lake view]

Hi I contacted Estate Agent and explained to him that we needed to reduce our bid by 3K about 8 days ago. He said he understood and would contact the vendor and see what he said. He said he would definitely come back to me. This waiting game is driving me mad my husband said not to contact estate agent that he has to come back to us as we have paid booking deposit. What should I do sit tight or contact him ??

 

[Leo]

What should I do sit tight or contact him ??

After 8 days I'd be contacting the agent. That's more than enough time for the vendor to consider the offer and decide. The longer you leave it the more likely they are to find another buyer.