Moving house and new mortgage

Locornwall

I am selling and buying at the same time. I have an existing mortgage, which I will come out of and take equity to pay 20& of my new home.

When I applied for the new mortgage I looked at figures based on what I had paid at the time. Since then I have made further payments on my mortgage, bringing the amount owed down.

1. When will I receive any additional money from my current mortgage, once 20% has been used to pay for the deposit on my new house?

2. I understand 10% has to be paid at exchange of contracts, however the 10% I will receive from the sale of my property will be less than the 10% required to pay for the new property. I have spoken to my solicitor, who said it will be fine. Does anyone have an explanation how this will work out?

3. I am due to complete on 30th, however my mortgage illustration says the new mortgage will start 16th June. I normally pay my mortgage for my current house 20th every month. When will I stop paying this and when will the first payment come out for my new house?

kingstreet

1. Your solicitor will send it to you after completion if it isn't used to pay your legal & estate agency fees and stamp duty. That's what happens to any surplus due to you.

2. Yes. Your buyer's deposit passes up the chain becoming a smaller percentage of the higher purchase prices as it does so. Your solicitor is right. Forget 10% when you are selling & buying concurrently as that is not required following solicitor agreement.

3. The assumed commencement date on the illustration is just that; so ignore it as your first payment will depend on;-

when in the month you actually complete
and
if your lender collects in advance or arrears.

The closer you complete to the end of the month, the lower the accrued interest will be and the closer your first payment will be to a normal monthly payment amount.

Clearing banks collect in arrears, building societies and former building societies in advance. This will determine when your first payment is taken. Check which way your lender collects. It will confirm what will be debited and when following completion.

Locornwall

Thanks for the answers. I am going with Halifax, so should be collecting arrears, whatever that means