Just a quick request to ask if this seems OK

trelloskilos

Hi all - This should be a nice quick easy one to answer. I am just asking to set my mind at rest.

So far, I am going through the final stages of a BtL mortgage. All mortgage documents signed, and once the Mortgage company (The Mortgage Works) gets a final note from the solicitor, we're ready to roll.

The solicitor has asked us to place a 10% deposit to show a commitment to buy (as if jumping through all the hoops wasn't enough)

I'm committed to buying the property. I'm a little hesitant though in case the Mortgage Company does a complete U-turn.

Should I place the 10% deposit, or tell the solicitor that by requesting this deposit, he is impeding progress?

Is it normal practice for solicitors to request this?

Thanks for reading. All opinions are welcome! :-)

kingstreet

The solicitor will require your deposit, 10% of the purchase price, in cleared funds in preparation for exchange of contracts.

Until contracts are exchanged and the funds are forwarded to the vendor's solicitor, the deposit is refundable.

Once contracts are exchanged, you are committed. Your solicitor will then want the balance of your deposit cleared in his account a few days before completion.

trelloskilos

Thanks for the reply, Kingstreet.

My Mortgage Company is asking for 25% deposit. The solicitor is asking for 10%. Im guessing that I need to have a total of 35% then....

....or is the 10% included in the 25% deposit?

Sorry for the daft question, but at the moment, it seems a bit daft. At this rate, I won't need a mortgage....! I am not affluent, but I do have the means to just buy the property outright. I just thought that it would be better for me to get a BtL mortgage, let the place out and use the rent to pay the mortgage.

kingstreet

If you are borrowing 75% of the purchase price, you need a 25% deposit in total.

Your solicitor would like 10% (2/5 of your total deposit) in preparation for exchange of contracts, with the other 3/5 in preparation for completion.

If you expect both to happen close together, I'd pay the whole deposit now and get it over and done with.