When would we need the full deposit by?

jenpenpie

Hello helpful people,

My husband and I are currently saving for our first house. We have a bit of a deposit put away now but are planning to step it up a bit in the next few months and make a proper, MSE-style effort.

What I was wondering, is when will we need the exact deposit available for? Say for example we have 12% now, and found a house that we liked, could we put in an offer/get mortgage based on a 15% deposit, presuming we could find the rest by the time it was required (presuming that it would be a few months from offer to completion)? Would mortgage lenders need to see proof of bank statements confirming that deposit funds were available?

Just to clarify, we certainly wouldn't do anything silly that may cause the sale to fall through, i.e. make an offer without definitely, 100% knowing that could finance the deposit (plus a contingency fund).

Thanks in advance :rolleyes:

milliemonster

Normally deposits are paid on when you sign contracts, so after all the searches, surverys mortgage offer etc has been done. The timing of this very much depends on individual circumstances, it can be anything from a few weeks after offer acceptance to months if issues arise during the conveyancing period.

Trying_to_be_good

A deposit (the standard being 10%) is normally payable at exchange of contracts in the English system. This has to be cleared funds, held by your solicitor.

If you are 'topping-up' that minimum deposit (and therefore taking less mortgage), this extra will need to be cleared funds with your solicitor the day before completion - it can be the same day as completion, but is cutting it very fine.

Good luck with your hunting - and don't forget about the money to pay the legal bills, stamp duty etc!