Deposit Advice - Moving Home

Confused619

Hi,

Looking for some advice on house purchase.

Currently mortgage free in an existing purchased house. Looking to move and purchase a property with a mortgage which is roughly a LTV of 60%.

Does the equity in the current house count as the deposit or would an upfront deposit still be required?

_Andy_

Are you selling the existing property? If so you would use the equity from that as the deposit for the next one (the solicitor would handle the monies)

Confused619

Yes the existing property would be sold to fund 40% of the next purchase.

So using the equity in the house as a deposit is fine, we wouldn't need to find additional cash?

_Andy_

No, as above, you would use the equity as a deposit.

Confused619

Just to update this thread and ask some more questions. Forgive me if they sound stupid.

All the deposit is tied up in the house, so until the house is sold we have no deposit.

How will this work at exchange of contracts? When the deposit is required. As this normally occurs a couple of week prior to completion? I am assuming a very small sum will be negotiated at exchange of contracts and the final remainder of the deposit be done at completion?

Fliss_M

It would mean you couldnt complete untill you have sold house A, so really I wouldnt look seriously to offer till yours was in the process of selling