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Solicitor wants 10% deposit?

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Comments

  • Rachman_2
    Rachman_2 Posts: 215 Forumite
    Jem8472 wrote:
    this just strikes me as odd. I am getting a 100% mortgage because I done have any serious cash for a deposit so how come I have to find this sort of money? I would have thought as we were getting a 100% mortgage the lender would pay that for us or something.

    But as there is no chain with what we are buying the solicitor is going to ask if we can exchange and complete on the same day.

    As a question of risk allocation, why would your lender advance monies before you had entered into a mortgage deed and for a period when you did not own the property. No chance whatsoever.

    If you can simultaneously exchange and complete, it's easier...
  • Jem8472
    Jem8472 Posts: 1,373 Forumite
    Part of the Furniture Combo Breaker
    I just thought the whole point of 100% mortgages was that you did not need large amounts of mony laying about for a deposit.
    Jeremy
    Married 9th May 2009
  • Rachman_2
    Rachman_2 Posts: 215 Forumite
    Jem8472 wrote:
    I just thought the whole point of 100% mortgages was that you did not need large amounts of mony laying about for a deposit.

    that's what I have been saying - you don't need the large deposit, you have a small one and the OBLIGATION to pay the rest at completion - the remainder of the 10% you have agreed to be obliged to pay if you don't complete........ (without good reason).
  • hazeyj
    hazeyj Posts: 391 Forumite
    Jem8472 wrote:
    this just strikes me as odd. I am getting a 100% mortgage because I done have any serious cash for a deposit so how come I have to find this sort of money? I would have thought as we were getting a 100% mortgage the lender would pay that for us or something.

    But as there is no chain with what we are buying the solicitor is going to ask if we can exchange and complete on the same day.

    If you do not have the deposit for exchange then there are special mortages that allow you to draw on the mortgage funds to exchange. Your sols and the buyers sols should have asked how you were funding the exchange monies.

    Ex & C could happen could get round this problem though.
    I love this site :beer:
  • sarah_elton
    sarah_elton Posts: 2,017 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Jem8472 wrote:
    I just thought the whole point of 100% mortgages was that you did not need large amounts of mony laying about for a deposit.

    I had a 100% mortgage and exchanged and completed on the same day. The majority of people with 100% mortgages exchange and complete on the same day purely because of the fact they don't have a deposit to hand over on exchange.

    However, your seller must obviously agree to simulataneous E&C.
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