help! short of funds for exchange of contracts!

maria6259

when i moved 4 years ago, my solicitor used the 10% deposit from my buyers to pay the 10% deposit i needed for my new house, therefore i didnt need to put any money up front (wouldnt have been able to anyway as all my money was in the house i was selling). i thought this was 'usual' practice

alex_g_2

You could exchange and complete on the same day.

zebulon

ellustellus wrote: »

surely the bank dont expect people to save a deposit when they are paying a mortgage every month

I would hope they don't expect me too either seeing that I pay a rent every month ...
ok maybe i didn't read it the correct way but it made me giggle anyway.


good luck with all this

ellustellus

i just spoke to a friend whos moved a few times and they said that they have never handed a cheque over on exchange,just on completion....i can start breathing again now,thanks for your help,i'll speak to my conveyancer at 9am!! thanks again

Fire_Fox

ellustellus wrote: »

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?

Why on earth not???? Once most people move they will have a larger mortgage, higher council tax bill, bigger energy bills - if you cannot afford a mortgage AND to save then you have overstretched yourself and certainly should NOT be moving up the property 'ladder'. That goes double with interest rates being so low - try paying 15% as many were in the early nineties!

As far as I can see you are only 'paying off' a secured loan by adding the debt to your mortgage, i.e. consolidating. Your outgoings may be decreasing but your debts will be increasing, and the amount you pay off will probably increase, try the snowball calculator:
http://www.whatsthecost.com/snowball.aspx

ellustellus

you know what i mean! they have me trapped in a mortgage and they can see exactly what i owe and know what i have sold it for,so therefore they know my equity and can see it will cover my deposit for my next property. i meant that they wouldnt expect me to save for a deposit when they can see that i have 'saved it' with what ive paid off on my mortgage. yes i may be close to the breadline but it is only because i need a 3 bedroom house,if i didnt i wouldnt have one. i dont buy bigger just to keep up with the jones! unfortunately when your a low earner you still need to progress,if i didnt take any risks i'd still be sat in a 1 bedroom flat with big 'emergency fund'. mortgages are all about risks,actually life is about risks. i know i am lengthening my term but my outgoings will still be lower for now. i would love to pay big lumps off my bills and get them out of the way quicker but when you have young children i think they need to be concentrated on financially,with holidays etc...i could sit on the internet every weekend looking for ways to save a pound,but at what cost? over and out...

GDB2222

How in heaven's name does your conveyancing bill reach nearly £3k?

I am afraid that I don't follow your arithmetic:
Equity in present house less secured loan = £9k
You need £11k deposit + £4k for the solicitor and EA = £15k

So, your shortfall is £6k. Most credit cards charge 20% - 30% on credit card loans, so that's £1200-£1800 a year in interest on this £6k shortfall if you go that route.

On exchange, you need to provide a 10% deposit, ie £11k. However, you can use the deposit from your purchaser to satisfy most of that. Their deposit will be £10,300 which you can pass on to your vendors. So, you'll only need to find £700 in cash at exchange.

Fire_Fox

ellustellus wrote: »

you know what i mean! they have me trapped in a mortgage and they can see exactly what i owe and know what i have sold it for,so therefore they know my equity and can see it will cover my deposit for my next property. i meant that they wouldnt expect me to save for a deposit when they can see that i have 'saved it' with what ive paid off on my mortgage. yes i may be close to the breadline but it is only because i need a 3 bedroom house,if i didnt i wouldnt have one. i dont buy bigger just to keep up with the jones! unfortunately when your a low earner you still need to progress,if i didnt take any risks i'd still be sat in a 1 bedroom flat with big 'emergency fund'. mortgages are all about risks,actually life is about risks. i know i am lengthening my term but my outgoings will still be lower for now. i would love to pay big lumps off my bills and get them out of the way quicker but when you have young children i think they need to be concentrated on financially,with holidays etc...i could sit on the internet every weekend looking for ways to save a pound,but at what cost? over and out...

If you think this website is all about saving a pound, you have completely missed the point. There are people who have dug themselves out of tens of thousands of pounds of debt, and people who have overpaid tens of thousands of pounds on their mortgage.

Young children do not need fancy holidays, I can barely remember any of the holidays we took before I turned fifteen! The holidays are for you, don't kid yourself. Kids would be happy with the Sun newspaper £10 holiday. Kids do not need lots of money spending on them, they need love and attention which I am sure you give them in spades.

GDB2222

I fondly remember childhood holidays in Bournemouth in a rented house as being very, very happy days. We went back to the same house several years running. Not only don't young kids need fancy, they prefer simple, and familiar is best of all.

I'm not having a go at ellus, just reminiscing.