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100% and exchanging contracts

leeppp222
leeppp222 Posts: 15 Forumite
in House buying, renting & selling
We are first time buyers who have applied, and been accepted for a 100% mortgage. We've also made an offer on a property that has been accepted.

However, I have been reading online that when it comes to exchanging contracts, you still need to pay a 5 / 10% deposit?!? Is this the case, and if so, what's the point in getting a 100% mortgage?

Can someone confirm is this is the case?

Comments

  • pcwilkins
    pcwilkins Posts: 306 Forumite
    Most of the sites I've read indicate that your mortgage lender would arrange to pay this deposit for 100% mortgages*. Speak to them.

    Peter

    *Ouch!, by the way.
  • silvercar
    silvercar Posts: 49,971 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    If you exchange and complete on the same day, there will be no need to pay a deposit.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • leeppp222
    leeppp222 Posts: 15 Forumite
    silvercar wrote: »
    If you exchange and complete on the same day, there will be no need to pay a deposit.

    Thanks. Is it best for me to let my estate agent know we're using a 100% deposit now our offer has been accepted? Are most people OK with exchanging and completing on the same day?
  • Running_Horse
    Running_Horse Posts: 11,809 Forumite
    Part of the Furniture Combo Breaker
    Exchanging and completing on the same day is a risky business. Someone I know did it, had the van booked and everything arranged, and then it fell through.
    Been away for a while.
  • Woody69_2
    Woody69_2 Posts: 119 Forumite
    I've recently moved and the people at the start of the chain had a 100% mortgage. My solicitor at first said we had to exchange and complete on the same day but we said we were not really happy with this and the people at the top of the chain were not happy either as they were emigrating and needed 2 weeks notice to book their removals. So we all agreed to exchange with no deposit and complete 2 weeks later.
  • snowmaid
    snowmaid Posts: 3,494 Forumite
    Running_Horse wrote: »
    Exchanging and completing on the same day is a risky business. Someone I know did it, had the van booked and everything arranged, and then it fell through.


    Why is exchanging and completing on the same day risky??? We will be doing that next week!!:eek:
  • Running_Horse
    Running_Horse Posts: 11,809 Forumite
    Part of the Furniture Combo Breaker
    snowmaid wrote: »
    Why is exchanging and completing on the same day risky??? We will be doing that next week!!:eek:
    What happens if someone changes their mind on the day?
    Been away for a while.
  • Unknown1234_2
    Unknown1234_2 Posts: 653 Forumite
    Part of the Furniture Combo Breaker
    I exchanged and completed last November 06 and all went fine : )
  • eviekingston
    eviekingston Posts: 3 Newbie
    I've exchanged and completed on the same day twice. Scary and stressful but worked out fine! Annoying for removals though - and doesn't work so well with a chain.
  • charley1965
    charley1965 Posts: 72 Forumite
    I started out with a 100% mortgage a few years back. When I exchanged contracts I did not supply a substantial deposit as I did not have it! I paid a goodwill sum of around £200 which my parents lent to me. I think it all depends on your vendors, they may be happy with a nil deposit.
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