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100% mortgage-no deposit-few qs
chadfield
Posts: 36 Forumite
Hi everyone
I am a FTB and have just had an offer accepted on a flat. Have instructed solicitors/surveyor etc so things moving forward nicely.
I was hoping that you could help with my following question:
As I will have a 100% mortgage, I will not have a deposit to put down at signing. I understand from my broker and reading this site that I will therefore need to sign and complete on the same day. I also note from reading this site that that can prove v stressful! My specific questions are as follows:
1. I understand that there are a total of 3 other parties above us in the chain. Am I right in thinking that everyone will therefore be forced to exchange and complete on the same day? Are people likely to be happy with this given the extra uncertainty that this introduces?
2. I haven't informed my vendor yet, on the basis that no-one has asked. Is it reasonable to assume that this will be communicated and dealt with directly lawyer-to-lawyer?
3. Is there anyway around this? I noted on another posting that you can get all parties in the chain to accept a contractual commitment that means they can be sued for the value of a deposit (meaning no deposit actually flows upwards). Is this something that is actually used much in practice?
Any experience that anyone has would be v useful. As general info, we have bid asking price for the property so feel that other than this we are ideal for the vendors.
Many thanks
Chris
I am a FTB and have just had an offer accepted on a flat. Have instructed solicitors/surveyor etc so things moving forward nicely.
I was hoping that you could help with my following question:
As I will have a 100% mortgage, I will not have a deposit to put down at signing. I understand from my broker and reading this site that I will therefore need to sign and complete on the same day. I also note from reading this site that that can prove v stressful! My specific questions are as follows:
1. I understand that there are a total of 3 other parties above us in the chain. Am I right in thinking that everyone will therefore be forced to exchange and complete on the same day? Are people likely to be happy with this given the extra uncertainty that this introduces?
2. I haven't informed my vendor yet, on the basis that no-one has asked. Is it reasonable to assume that this will be communicated and dealt with directly lawyer-to-lawyer?
3. Is there anyway around this? I noted on another posting that you can get all parties in the chain to accept a contractual commitment that means they can be sued for the value of a deposit (meaning no deposit actually flows upwards). Is this something that is actually used much in practice?
Any experience that anyone has would be v useful. As general info, we have bid asking price for the property so feel that other than this we are ideal for the vendors.
Many thanks
Chris
0
Comments
-
Hi,
You can negotiate a lower deposit, say a couple of thousand if you can find it and use that. Even tho you are getting 100% mortgage if you exchange before completion you have to put down something.
I got a 100% mortgage about 8 years ago, and it took me by surprise when they asked for a deposit, I put down 2k I think after agreeing this with my vendor and got it back after completion.
You should mention it so everyone can make plans....things may have changed since tho
Best of luck0 -
It may be possible, depending on the lender, for the solicitor to request 10% of the funds in advance of the full mortgage thus giving him effectively the 10% required deposit.
I have seen this done only a handful of times though.
Check with your lender and your solicitor.
Andy0
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