Deposit?

jsaver

Hi Guys,

We have a house move coming up in about 6 weeks to a bigger, and more expensive house. Do I need to have money available at the point of contract exchange in terms of a deposit? If so, how much is it likely to be?

I have only purchased a house once before, and I required the deposit for the mortgage lender only.

If it is relevant, I am remaining with my existing mortgage lender.

Thanks in advance,

jsaver

pararct

Probably/Possibly.... What is the difference between your new mortgage and the amount of money your existing house is selling for.... Less disbursements of course..

jsaver

The difference is about 220K after disbursements. The old house is selling for a similar amount.

chappers

I assume you are in a chain and if so whereabouts?
Any deposits should be passed up the chain with you making up the shortfall between what you recieve and what you owe, although this is totaly negotiable and doesn't always happen in practice.

jsaver

We are in the middle of a chain. FTB below, down sizer above.

chappers

You can probably just pass the deposit up the chain, assuming your vendor is happy with that, 10% is the norm but thats not set in law its the exchange of contracts that's important, the deposit is there to dissuade anyone from breaking the contract and not completing

jsaver

That's very helpful advice thank you - jsaver!