Additional deposit on house purchase

Cesa

Hi all, help needed please!

I am selling my house for 84k and buying another for 126k. I have 24k in equity in my current house, of which 19k will be used a deposit. My conveyencers have told us that we need to have a deposit at exchange that is separate to the equity on the house. They say that we can use our buyers deposit and we need to put up 3600 in addition prior to exchange. Is this normal? My mortgage adviser has confirmed she has never heard of this and normally everything is documented in the mortgage and we shouldn’t have to put up anything extra.

Help please, I’m so confused!!

Tom99

You normally pay a 10% deposit on exchange of contracts ie £12.6K but you can usually use the deposit from your sale towards that, say £8.4K. The difference is normally what you have to come up with so say £4.2k.
However lower deposits can be agreed so ask you solicitor to investigate that.

kingstreet

Cesa wrote: »

They say that we can use our buyers deposit

They should be negotiating with your vendor's solicitor for that to be your entire deposit and you should NOT be having to find cash on top.

It is NORMALLY 10% for FTBs and those not bringing equity to the purchase.

If you fail to complete, you will still be liable for 10%, plus costs.