Buyer only has 5% deposit!

moneyistooshorttomention

Lu_Lu wrote: »

Can't take a loan as mortgage company may do another credit check and decline our mortgage?

No choice but to grovel to parents to see if they have any cash lying round. We don't want to lose our dream house and it's us that doesn't have the money now not them. Also I think the signed their contracts this morning so will have put the 5% deposit in there.

completion date hasn't been fully agreed yet either but that may not be until 16 October. It's our builder pushing for us to exchange early.

Hmmm....and I am remembering that it came as a big shock to me as an FTB'er to be told there was that difference between THE 10% (or more) deposit and that 10% available at Exchange of Contracts "deposit" and...yep...blame is due (and not on me) for that. Because I honestly hadn't been told - by anyone.

However, I scraped through by skin of teeth and had JUST enough to make that 10% deposit at Exchange so-called "deposit". If I hadn't - then it would have been down to me and me only and I would have taken out a loan at that point (be it from a loan company or parents). My problem = my solution and then go "belt" those responsible for not telling me the difference between deposit and "deposit". I am astonished that, all these years later (ie about 30 years!!!!) and those who ought to be telling FTB'ers still aren't telling them...:mad:

Thrugelmir

AdrianC wrote: »

The buyer's solicitor should have picked up on this earlier.

Why? The buyer might not have planned on such an early completion. Buyer might be playing hardball by being requested to exchange early. The initial posts made no mention of this fact which changes the situation entirely.

silvercar

completion date hasn't been fully agreed yet either but that may not be until 16 October. It's our builder pushing for us to exchange early.

Make this the builder's problem. If you exchanged and completed on the same day there would be no requirement for a deposit.

Lu_Lu

AdrianC wrote: »

Everybody in the chain has a problem in two days time, if this doesn't get sorted one way or another.

The buyer's solicitor should have picked up on this earlier.
The OP's EA should have picked up on this earlier.

I'm suspicious that this is all a load of codswallop from a buyer who CAN pay the deposit they've always known they have to pay - and are just trying to play some pathetic little game. Either that or there's quite simply a terminology confusion, and there really isn't actually any problem at all.

Honestly, I don't have enough info to make this conclusion but they have come across as very naive FTBers from beginning so maybe they just didn't know! Or maybe something has happened that's taken the rest of their money.

moneyistooshorttomention wrote: »

Hmmm....and I am remembering that it came as a big shock to me as an FTB'er to be told there was that difference between THE 10% (or more) deposit and that 10% available at Exchange of Contracts "deposit" and...yep...blame is due (and not on me) for that. Because I honestly hadn't been told - by anyone.

However, I scraped through by skin of teeth and had JUST enough to make that 10% deposit at Exchange so-called "deposit". If I hadn't - then it would have been down to me and me only and I would have taken out a loan at that point (be it from a loan company or parents). My problem = my solution and then go "belt" those responsible for not telling me the difference between deposit and "deposit". I am astonished that, all these years later (ie about 30 years!!!!) and those who ought to be telling FTB'ers still aren't telling them...:mad:

Totally agree, their solicitor should have been much more helpful - and ours probably too.

Thrugelmir wrote: »

Why? The buyer might not have planned on such an early completion. Buyer might be playing hardball by being requested to exchange early. The initial posts made no mention of this fact which changes the situation entirely.

Our buyers have been completely happy with the timescales all along. It has been quick in that offer was accepted on 24 July but they have never objected to anything on any level, let alone financial. It's us actually requesting the early exchange, which is why I feel we need to be more flexible with them.

Lu_Lu

silvercar wrote: »

Make this the builder's problem. If you exchanged and completed on the same day there would be no requirement for a deposit.

The builder doesn't care though as they will just put our house back on the market. They want exchange in 28 days and we are already 4 days over that and then they serve 2 weeks notice on you to complete once the house has been signed off. It is absolutely impossible to arrange an exchange and completion on the same day with them. Also, I wouldn't do this as could end up with packed up house and last minute it all falling through!

By the way, I really appreciate you all helping and contributing to this discussion it's very helpful!

Also, just spoken to my lovely Dad who said they may be able to help so he is going to speak to my Step mum and let us know.

KRB2725

I'm not sure of the process, I'm sure somebody can correct me if I'm wrong but I thought that when you exchanged, the Solicitors held the funds until completion?

If that's the case, then can you not just ask the builder to exchange with 5% as it will make no difference to him? If it did fall through after exchange for any reason, I believe you would be liable for the full 10%, even if exchange was agreed at 5%.

Lu_Lu

emmatthews wrote: »

I'm not sure of the process, I'm sure somebody can correct me if I'm wrong but I thought that when you exchanged, the Solicitors held the funds until completion?

If that's the case, then can you not just ask the builder to exchange with 5% as it will make no difference to him? If it did fall through after exchange for any reason, I believe you would be liable for the full 10%, even if exchange was agreed at 5%.

Nope, can't do this as we are using help to buy so have to have the 5%.

My dad has lent us the money we need to make up the deposit but now panicking that this will be classed as a loan with the mortgage provider and that offer might be rescinded. We will be giving it all back as soon as we complete.

This is all so stressful!