help! short of funds for exchange of contracts!

ellustellus

hi,im worried i wont have enough money for the exchange of contracts,i am buying a 110,000 house,the bank are loaning me 90% which is 99,000. i have sold my house for 103,000 and my settlement on mine is 77,000. i also have a secured loan which is settled at 16,400. this means that i have approx 9,000 left. i need a 10% deposit for the new house...11,000,so thats 2,000 i need to top it up,but its the conveyancer charges that have hit me hard....at 2,750 and also 1,385 for the estate agents...this means i need 6,000 and i only have 3,800. could i do something with my secured loan? i wish i could get a loan but i cant at the minute,yet my income and credit are fine...help please! thanks

Terry

Richard_Webster

As it is a secured loan you will have to pay it off when you sell your present house so i can't see how you can raise more money on that.

silvercar

You could possibly negotiate a lower deposit on exchange, but you would still need to find the money for completion.

How about piling everything on credit cards between now and completion? Or ask the bank to increase your overdraft limit.

The question I would ask is whether you can afford the move. It sounds like you will have no emergency cash.

ellustellus

hi,thanks for your replys,i'll have to see if i can get a credit card or some kind of loan...i think this may end up falling thru as people are telling me that i need to pay the 10% deposit before i get the profit from the sale of my house? sounds crazy to me as technically my savings are IN my house....im struggling,

Terry

G_M

When are you due to Exchange? How come you've got this far without working out your finances?

ellustellus

hi,i dont think i'll be exchanging until end of may...ho hum,i'll just have to see what happens,i'll contact my conveyancer tomoro morning

Sammy85_2

Hasnt your conveyancer checked before now that you have the funds to complete the purchase? My conveyancer wanted to see that we had funds for the deposit within the first few days of appointing her.

ellustellus

hi,no my conveyancer didnt ask me for it,i explained to her what i put above,about the profit from the house paying the deposit,i think i may have been 'strung a line'....i hope not,i hope this works out as if i move my outgoings will actually go down due to secured loan being paid off...surely the bank dont expect people to save a deposit when they are paying a mortgage every month,especially if you have equity?

Ulfar

If you cannot raise the funds to complete the purchase then whatever you do do not exchange.

You think things are scary now wait till you are sued for non-completion and you get all the costs from the whole chain.

ellustellus

i can get the funds for completion but i am confused about how much i have to raise for the exchange?

hazybubbles

ellustellus wrote: »

i can get the funds for completion but i am confused about how much i have to raise for the exchange?

Then ASK your solicitor and get it in writing once and for all. Theres no point speculating and guessing!