Using equity as deposit for new house

worktolive_2

Hi,
I am getting myself confused!
If we have approx 40K equity in current house and we want to move house, obviously, the equity is not available until the current house is sold. So at what point when completing on the new house is the deposit paid as normally deposits are paid upon exchange.
I is confused!! Can anyone clear up this confusion for me. I am sure it is perfectly simple but I cant seem to get is straight in my head!
Thanks.:D

mummyroysof3

We also are doing this and natwest are aware of it and haven't said its a problem bu I've wondered how it works too

Thrugelmir

Purchaser of your property will pay a deposit. This can be used towards the property you are buying. Normally a 10% deposit is agreed. So you if the property you are purchasing is more expensive. You'll need to find and fund the difference.

The lender will leave up it to you to resolve the funding of the deposit. The lender merely provides the mortgage finance.

kingstreet

A person selling the property will see their equity used as their deposit and they will not have to inject any cash. The solicitors will sort it out between themselves.