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Second time buyer + deposit
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arcadian_3
Posts: 2 Newbie
Hi All,
A forum newbie needs some advice please.
We are about to sell our first property and buy a new house that is lesser in value by around £25k. We intend to port our mortgage across with our current lender.
What we would like to know is, if you don't have the hard cash for a deposit, can the equity from the sale be used to complete the purchase?
I did call my mortgage lender and they said you didn't need to worry about a deposit in this case - does this make sense?
Your advice and opinions are much appreciated.
Michael
A forum newbie needs some advice please.
We are about to sell our first property and buy a new house that is lesser in value by around £25k. We intend to port our mortgage across with our current lender.
What we would like to know is, if you don't have the hard cash for a deposit, can the equity from the sale be used to complete the purchase?
I did call my mortgage lender and they said you didn't need to worry about a deposit in this case - does this make sense?
Your advice and opinions are much appreciated.
Michael
0
Comments
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you dont need a cash deposit .Most second time buyers use the profits from the sale as a deposit .If your lender is happy you have nothing to worry about .0
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Check that the lender will be happy for a higher loan to value if you are buying a lower value property.
How will you fund the deposit on exchange? You may need to consider exchanging and completing on the the same day.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
It is perfectly normal, in fact commonplace for the deposit to be fully funded from the proceeds of a house sale.
If your lender has already confirmed it then you are fine. Just remember to let your solicitor know that the deposit is coming from the equity and all we be well.
You should be able to exchange and complete with the 'usual' 1-2 weeks gap as normal, this is all taken care of by the solicitors. They will confirm it for you.
Andy0 -
Hi all,
Many thanks for much advice and reassurance. Wonderful!
Michael0
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