Does deposit need to be in cash?

mister_t

Situation is this. Trying to sell our house and buy a new one (with a mortgage). We have quite a lot of cash on hand to put towards the new house.

Our existing mortgage is about to come out of its fixed rate period so the rate is going to jump to 6.5%. We can't chnage mortgages as we will need a new one on the new house.

My thought is that the cash that is sitting around could be dumped into the existing mortgage to lessen the pain of the high rate, but my question is, do I need to have the money as cash for the ~10% deposit on the new place or can it come from the sale of the existing house? I presume all the fees/stamp duty need to be available as cash.

To buy a new place what funds do I need as cash?

stanmoresaver

mister_t wrote:

Our existing mortgage is about to come out of its fixed rate period so the rate is going to jump to 6.5%. We can't chnage mortgages as we will need a new one on the new house. QUOTE]

Some lenders will have penalty free retention products that could fit the bill.

mister_t wrote:

but my question is, do I need to have the money as cash for the ~10% deposit on the new place or can it come from the sale of the existing house? I presume all the fees/stamp duty need to be available as cash.

No it doesn't. neither do the fees.

I would suggest discussing this matter with your broker.

Hope this helps


SS

silvercar

Normally the deposit you receive on your property gets passed up the chain, via solicitors, for the house your purchasing. fess and stamp suty are normally paid on completion, your solicitor should prepare a statement to let you know what funds you will need to deposit with him.