When exactly do I need the full deposit?

rex28

Can anyone fill me in please.
We have a DIP of up to £350k, with a 10% deposit. This was done online with Halifax.
I've found a house on the market at £280k, and it's great. I want to put an offer in.
So I will need a £28k deposit, but as of today I have £27k in the bank. It will be bumped up to £28k on pay day at the end of this month (after monthly expenses go out of my account).
I haven't forgot about other fees. They would be covered our next month's salary.
If I put an offer in and it's accepted, can I still go through a full mortgage application, on the basis that I will have the deposit by the time of exchange / completion? Or do I need it all when I apply for the mortgage?
The house we have found is great value and there were 3 other viewers on the same day. Don't want to miss it.

MortgageMamma

You can go for it now, but bear in mind if something happens like your hours are cut or you lose your job then you will have incurred lender fees and conveyancing fees. Make sure when you make your offer that the estate agent, vendor (seller) and conveyancer know what your earliest date for completion is (i.e. when you'll have full deposits plus legal costs and stamp duty). Have you had a quote for your legal costs as some firms quote according to property value and whether its freehold or leasehold.

MortgageMamma

Just to add as well, Halifax will ask to see proof of deposit, so will the solicitors. You must be able to evidence that you have a deposit.

rex28

Thanks. Do you know when the proof will be required by Halifax?
Up to now, all they have said is that I will need ID and 3 months payslips at the application appointment.
I've got a quote of £700 for legal fees and £4000 for stamp duty.
This months salary will complete the deposit.
What's left over, plus next month's salary should mean that we have the legal/stamp duty.

MortgageMamma

They will ask for proof of deposit at application stage, you almost have it, so a small deficit should not be a problem. The solicitors will also ask to see it once you instruct them and also for ID. Be prepared and have your passport, driving licence, 3 months bank statements, 3 months wage slips, proof of any other income and a couple of recent utility bills to hand. If you can hand all that in to Halifax in one go it will speed up your application significantly.....if you wanted to drag it out a bit though, you could forget one or two items and provide them say a week or so later If you are intending to deal with Halifax direct in a Branch rather than through a broker make sure you book in to do your mortgage well in advance as there is normally a wait.

PasturesNew

To buy it you will also need £4,000 in stamp duty, up to £1,000 in "other costs" and up to £1,000 for the solicitor's fees.

If you've not quite got the deposit, where's this extra £6k going to come from?

rex28

Ok thanks very much.
All taken on board.

rex28

We are £1k short of deposit, and working on £5k in extra costs including stamp duty.
Our combined income is £5k per month, net.
Current rent and regular outgoings are about £1700 per month
So we should hopefully have everything in order by July salary.

tywang2006

I applied mortgage without full deposit in my account and I got the mortgage offer. I think it might depend on your lender.

mparter

Sorry for hijacking the thread but it's a related question. How do you prove the deposit if its coming from the sale of your existing house?

Mummyto4kids

mparter wrote: »

Sorry for hijacking the thread but it's a related question. How do you prove the deposit if its coming from the sale of your existing house?

Your solicitor (if you're using the same one for sale and purchase) can verify it on behalf of the mortgage company. I sold my house last November and the solicitor retained my deposit ready to exchange on the new property I assume they provided whatever proof our lender needed by way of the mortgage redemption certificate from my previous lender. If you aren't using the same solicitor then you should still have a redemption statement where you can see the sale price vs mortgage outstanding