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Exchange of contracts
Simba-ali34
Posts: 228 Forumite
hello,
i am just after some information regarding the exchange of contract deposit.....i notice it says that on exchange of contracts a 10% deposit is payable. Now is this in addition to the deposit on the mortgage? example being ...if im buying a share in a new build property worth £120,000 and im paying 20,000 as a deposit (meaning my mortgage would be £100,000) would the exchange of contract deposit come from the £20,000 or is it a totally different payment? i am in the early stages of buying and i am just trying to roughly budget
thanks for any information
i am just after some information regarding the exchange of contract deposit.....i notice it says that on exchange of contracts a 10% deposit is payable. Now is this in addition to the deposit on the mortgage? example being ...if im buying a share in a new build property worth £120,000 and im paying 20,000 as a deposit (meaning my mortgage would be £100,000) would the exchange of contract deposit come from the £20,000 or is it a totally different payment? i am in the early stages of buying and i am just trying to roughly budget
thanks for any information
0
Comments
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That is the deposit. It is the bit of the payment for the house that you pay out of your savings and the mortgage pays the rest. So on exchange of contract you pay the 10% deposit then on completion the bank lends you the rest of the money to pay for the property.0
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You pay the 10% on exchange (£12k) and the remaining £8k on completion.0
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Hmmm - yes but to be clearer perhaps:AnotherJoe wrote: »You pay the 10% on exchange (£12k) and the remaining £8k on completion.
You pay 10% on exchange (12K)
On Completion you pay the remaining 90% (£108K) of which £8K is from you and £100K comes from your mortgage.0
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