Exchange and deposit to solicitor

diska

Looks like I'm finally looking to exchange on our first property soon with a 90% LTV on a £250,000 house.

I've known about the typical 10% deposit you have to pay to solicitors on exchange but a little confused on how this works with the mortgage deposit which I've gathered is treated separate to this.

Do I have to provide another £25,000 ready to transfer to the solicitor (as I assume I can't use the £25,000 I've put aside for the mortgage) or can the mortgage provider release this as part of the mortgage?

G_M

* You are paying 250,000
* You are borrowing 225,000
* You have 25,000 in cash

So
* At Exchange you must pay a 10% deposit, so give your solicitor 25,000
* At Completion your lender gives your solicitor 225,000 and you give him any additional amount due (legal fees, SDLT, disbursements etc)

kingstreet

There aren't two deposits. There is no "mortgage deposit."

If you are putting down 10% deposit, you'll be expected to pay that to your solicitor, possibly with their fees and any stamp duty in time for exchange of contracts.

The total may depend on how much time there is between exchange and completion.

If putting down more, you pay the basic 10% for exchange and the balance in time for completion.

Dan-Dan

unless your buying and selling at the same time (and using the same solicitor)and then your solicitor will take what he requires at each stage

diska

Thanks GM/Kingstreet for your quick clarification. Was starting to confuse myself by thinking I was expected to find more money!