When do I actually pay my deposit???

just_t

Hi all,

My last post on here was very informative and helped me purchase a property! :j.

I am all the way through my checks with the solicitors and have the final paperwork now regarding exchange of contracts. We have a move in date of April 26th.

The solicitor hasnt made it clear, and I cant contact them until monday, when I actually have to pay my deposit for my mortgage???

I have 90% of my money and fees in my current account but the rest of my money is in a few places and might take a week or two to get together fully via cheques etc.

Just curious what to expect. Would be much better if the deposit is payed close to the move in date as this allows me greater flexibility. If I need my deposit now then I can get that sorted also but will be slightly disadvantaged.


Thanks in advance you wonderful money minded people :T

Yorkie1

The deposit has to be paid to your solicitor so that it has cleared a day or so before your exchange date. Usually it is 10% of the purchase price.

You pay the balance of any deposit (e.g. if you have a total of 15% deposit, you pay the outstanding 5%) so that the funds are cleared a day or so before completion.

just_t

Thankyou for the hasty reply.



So I have a little time it seems. Don't quite understand the second part?

I am paying a 15% deposit on the house. Do I not just pay all 15% at once :undecided

josievg

The 'deposit' you pay on exchange is [usually] 10% of the purchase price and paid by purchaser to vendor via solicitors to commit to buy the property.

This deposit is not related to any amount you may be getting on mortgage and would be payable by you upon exhange whether you were obtaining a 100% mortgage, 90% mortgage, 80% mortgage or not getting a mortgage at all.

The remaining 90% of the purchase price is paid upon completion. If your mortgage is 90% all this money will come from the bank. If your mortgage is 85% then you still have 5% to pay yourself upon completion.

Hope this makes sense.

just_t

josievg wrote: »

The 'deposit' you pay on exchange is [usually] 10% of the purchase price and paid by purchaser to vendor via solicitors to commit to buy the property.

This deposit is not related to any amount you may be getting on mortgage and would be payable by you upon exhange whether you were obtaining a 100% mortgage, 90% mortgage, 80% mortgage or not getting a mortgage at all.

The remaining 90% of the purchase price is paid upon completion. If your mortgage is 90% all this money will come from the bank. If your mortgage is 85% then you still have 5% to pay yourself upon completion.

Hope this makes sense.

Makes perfect sense. Many thanks for your help!