Quick 95% mortgage question

piratematt

Our house is going to be sold for £160,000
We still owe £135,000 (Nationwide 1.99% tracker)

We are moving and buying a new house for £289,000

So we have £25,000 equity in the house.

We have enough savings to top up the equity to make a full 10% on the new house. Indeed I have a decision in principle to this tune (Nationwide 2.04% 2yr tracker) - We'd still have some savings left over after all moving fees, but only a couple of months of salary.

But I can make my savings work much better if I get a 95% mortgage. (Nationwide 3.69 2yr Fixed).

1. At the end of the two year term I could pay off a larger lump sum than the extra interest I've paid.
2. We would also have continued security of many months of salary put to one side.
3. Indeed after 24 months, even after paying off a lump sum I'd have saved up a replacement security pot (We are saving £1,250 a month and will continue to do so)


If I did only make a £14,450 deposit on the new house:

A) Can I still qualify even though technically I can afford 10%
Would the conveyancer return the £10,550 left over in equity to my bank account on completion*