sales agreement different to my mortgage figures?

helenthompy

Hello, I am after a little bit of help or direction regarding my mortgage :-)
In 2007 we purchased a new build property and put down a 3% deposit and thought that this was how our mortgage was set up to pay this back.
I have recently looked at our agreement for sale as I was looking for something else to do with the house and see that the solicitors have detailed that we paid a 10% deposit.
I am not disputing the overall price of the property and what we owe, but having looked at our mortgage with our provider, I can see that there is a sub account which matches the other 7%. At this time both sub accounts are being paid as one complete mortgage 3.99%.
My query is, should this have been explained to me at the time (2007) and if they have fiddled the figures so that we have taken out a 2nd charge/loan to make up the 10% deposit at the time, why is this not showing as a separate matter to my mortgage which would now be vastly lower, and the 7% so called deposit could have been paid back separately and at a much quicker rate.
I would just like to know if I should have been told the full facts at the time by our solicitor and mortgage company and if there is something I can do, who should I query this with? Hope this makes sense :mad::money:

saverbuyer

Is this Northern Rock?

helenthompy

No its halifax

betmunch

If you are not disputing the purchase price, or the loan, what is it that's worrying you?


You would have been given a KFI and an offer letter detailing the loan and if its was broken down into two parts then it is broken into two parts.

helenthompy

Im trying to understand why the sale agreement details that we put down a 10% deposit when we only put down 3%

Also this 10% wasn't broken down on our mortgage offer.

We had the mortgage from our previous home ported (which was a good 60% combined with the new property mortgage) and those were the figures that were shown.

Im just wondering why the solicitor would show it in this way first of all?

nkkingston

IANAL (or a mortgage broker!), but my guess is that it's because most contracts require a 10% deposit at exchange. So your 3% and the lenders 7% are making up that 10%, which, having been paid at a different point, is shown separately on the mortgage document.

betmunch

helenthompy wrote: »

Im trying to understand why the sale agreement details that we put down a 10% deposit when we only put down 3%

Also this 10% wasn't broken down on our mortgage offer.

We had the mortgage from our previous home ported (which was a good 60% combined with the new property mortgage) and those were the figures that were shown.

Im just wondering why the solicitor would show it in this way first of all?

10% deposit between the solicitors is a standard practice. Maybe that's what they put then they make an allowance for people with a smaller deposit?

I still don't understand what you are worrying about though.

Have you asked the solicitor why it's shown like this?

helenthompy

Thank you, I was just wanting to check that nothing underhand had happened, but it makes sense now. We bought in the 2007 high and are still in negative equity. If we had of put down a 10% deposit I would feel slightly better as would be knocking more off the mortgage, but we did what we could at the time. :-)