Paying a deposit and moving

Jem8472

Hello all, I am after some advice.

We are looking at selling our flat and moving in to a bigger house.

We will have some equity from out flat about 20K. We are looking at buying something in the region of 160K to 170K.

If we use the equity to pay the 10% deposit on the mortgage that will leave us with a few thousand pounds.

I seem to remember hearing something about paying a deposit to the seller of the house we want to buy again about 10% on exchanging contract. Is this right? if so where does this money fit in with the mortgage and paying for the house.

We won't have the money to pay a 10% deposit to the mortgage company and the seller of the house.

I hope this makes sense to people.

I remember being asked for something like this when we bought our flat but as we had a 100% mortgage at the time we said to the solicitor we did not have the money and they agreed with the seller not to provide a deposit to the seller.

chris_m

The 10% deposit for the mortgage simply means that the lender will only be advancing 90% of the purchase price, not that you have to pay your lender that money.
Upon exchange of contracts you will be expected to pay the 10% deposit to the vendors, usually via your and their solicitors.
Then, before completion, your lender will/should have sent the outstanding 90% to the vendor's solicitor, possibly via yours (?).
Once they have confirmed to your solicitor that the contracted purchase price monies have arrived, completion can take place.

Jem8472

Thanks I think I understand it better.

I am just worried for any surprise costs cropping during the sale and purchase.