New Depsoit?

Jacknew159

Hi All, I'm looking at moving home, but do I need another deposit for the new house or can I use the deposit i paid for my current mortgage?

alex_163163

If you are talking about the exchange deposit:
Well if you are selling your current house, then your buyers deposit will pass up the chain and form part/ all of your deposit for the new house.
Typical deposit is 10% so if the new house is more expensive then you may have to contribute more, but your solicitor should be able to negotiate with your sellers to reduce this to the amount coming from your sale.

If you are talking about the mortgage deposit:
Yes if you have any equity in your current house, then you can use all/ some of this for the new purchase.

saajan_12

If you buy the new property in a chain (same day) as selling, you can pass the deposit 'up the chain' but note
*You may need cash for mortgage fees, legal costs, surveys, searches etc prior to exchange
*You may need cash for any Stamp Duty / Capital Gains tax if applicable after completion.
*Typically the exchange deposit is 10% of the new property price. Unless you negotiate this down, you'll need the equity in your current property to be atleast this or cover the difference in cash.