Exchange of contracts - deposit

xssc32x

Hi,
Currently in process of purchasing our first home (new build via Bloor Homes) utilising HTB.
We have received our confirmation that both mortgage and HTB have been accepted and we are currently scheduled to exchange contracts mid April.
On exchange we have been instructed we need to pay 5% deposit less reservation fee to Bloor, just a little confused how this is done, do we transfer the monies to our Solicitor and they make necessary payment to Bloor or is it our responsibility to ensure Bloor receive the deposit?
Also our mortgage is based on 7% plus the HTB, should we pay Bloor this or the 5%?
Any advice would be greatly appreciated
Kind Regards
Si

p00hsticks

In my experience, you pass the deposit money to your solicitor who will pass it to the sellers solicitor.

divadee

On exchange you will pay the 5% to your solicitor. On completion you will pay the remaining 2% and any fees to the solicitor. They will then drawdown the mortgage amount from the company and transfer it all to bloor.

eddddy

Theoretically, you only need to pay the the 5% deposit in order to exchange contracts.

But your solicitor might well ask you to pay the full 7%, plus stamp duty, plus legal bills etc before exchange of contracts.

That way you will have paid everything thing you need to for completion, so there is no risk of you delaying completion by paying late.

(But if you insist that you only want to pay 5% on exchange, and pay the rest later before completion - your solicitor should accept that.)