Loosing your deposit!questions??

lauren1983

Hi,

I wonder i any one can help me.

We are currently looking to buy a new house and have aroung 20k deposit.

I was just wondering what ways i could loose the deposit ie, if something goes wrong with the mortgage or we find out something about the house that makes us change our mind.

Just wanted to know at what stage will our deposit be at risk.

Thanks
Lauren

silvercar

Your solicitor won't put you in a position of exchanging contracts (the point at which your deposit would be at risk) until you have seen the survey and are happy with the condition of the house. You will also not exchange until you solicitor has your mortgage offer in writing from the lender.

Generally you arrange to start your building insurance from exchange, just in case anything happened between exchange and completion.

If you want to be extremely cautious, you could arrange to exchange and complete on the same day.

lauren1983

OH right thats good then.

Thank you for your reply it has put my mind at rest now :beer:

Cazza

Just to warn you, with new build properties, the builder will often ask for a reservation fee. This is usually £500 or £1000. This is officially non refundable with most builders. Some will refund this deposit or most of it, under SOME circumstances, but be aware of this when you put down a reservation fee!