How do you raise the 10% deposit required on exchange?

hex2

Reading through a couple of things I have got the impression that if I exchange a week prior to completion I will be expected to cough up a 10% deposit. Our deposit is tied up in the equity in the current house, and we are buying a much more expensive property. We do have some savings but not in the 30k region. I have always exchanged and completed on the same day before but this time we are likely to be in the middle of a big change so dont want to risk it.

Will I need 10% in the short term?
How do we go about raising it?
What is the likely cost?

Mortgage will probably be with Nationwide if that is significant.

silvercar

Normally you pass on your buyer's deposit to your seller.

It is quite common for people to exchange with a 5% deposit rather than 10%.

hex2

Thanks but we are going from 150 to 300 so I will still have to find shortfall!

JennyB

My experience is that the deposit is just passed up the chain from bottom to top regardless of any shortfall. I remember thinking the same thing the last time I bought but it just wasn't an issue - not even mentionned. If you have concerns check with your solicitor but I'm sure it will be fine.

lilyann1

We are in same postion selling at £270k and buying at £400k.We will get 10% deposit from buyers of £27k and we need to pay our 10% of £40k.Our solicitor has asked us for the extra funds to be with her ready for exchange.We are lucky we have savings,but I expect if we didn't then we would be drawing down our mortgage on the exchange date.
Speak to your solicitor as you may be able to negotiate a 5% deposit.We couldn't as our vendors need 10% for their purchase as they have no funds and are not getting mortgage.

silvercar

We were asked for 10% and just told our sellers that 5% was all we could manage. There was a hitch just before exchange further down the chain and I remember someone could only pay 4% or we'd all have to delay exchange by a week, so we just lived with it.

the_geary

See my post in the thread here.

We also have a fair difference, the deposit is also coming from the equity in the place we're selling. Our solicitor says it should be fine for us to just pass our buyer's deposit.