Mortgage deposit

Lishah

Hi,

Could someone explain to me pls if for example you have a mortgage in principle of £130k. Can you buy a house for £150k? Is it that you would then only have to show that you have the difference in money i.e £20k or would you have to put down the requested depsit of say 10% of the the £150k.

Thank u

YHM

Depends on a few factors. Have you used a broker for this?

Lishah

Yea, I will be going with a broker.

Thrugelmir

Lishah wrote: »

Is it that you would then only have to show that you have the difference in money i.e £20k or would you have to put down the requested depsit of say 10% of the the £150k.

Thank u

For exchange to be effected your solicitor will require all the funds to be available, i.e. £20k. Even though only £15k is transfered on exchange of contracts. The balance of £5k plus the mortgage advance will be transfered on completion.