New Build - When do I need full deposit?

FTB89

Hi guys,

Hoping someone can help! I’m a first time buyer looking to buy a new build which is due to be released in May and ready for completion in December. I’ll likely be organising my mortgage in June/July and am wondering if I’ll need to have my full deposit ready by then? I will have most of it by then but will be using wages between then and completion, plus bonus due to be paid at the end of June for the last few £k.

Is this ok if I can show where the rest of it will be coming from or do they expect you to already have it all?

Any advice will be really appreciated!

ashe

FTB89 wrote: »

Hi guys,

Hoping someone can help! I’m a first time buyer looking to buy a new build which is due to be released in May and ready for completion in December. I’ll likely be organising my mortgage in June/July and am wondering if I’ll need to have my full deposit ready by then? I will have most of it by then but will be using wages between then and completion, plus bonus due to be paid at the end of June for the last few £k.

Is this ok if I can show where the rest of it will be coming from or do they expect you to already have it all?

Any advice will be really appreciated!

You'll likely need it at point of signing/exchanging contracts, up until that point you will probably pay a reservation fee. The reservation fee generally saves the property for a set period of time - sometimes a little as 28 days - with the expectation that you will complete in that time. Speak to the developer and they will let you know.

Nicola83

Speak to your developer as we were in a situation that was kind of the same.
We went to reserve a house to be completed for June time but was offered one for February with some incentives. We weren't sure as we didn't have our full deposit yet and were relying on an extra 2 months wages to top it up. The developer agreed in the reservation contract that we'd pay so much on exchange of contracts, which was £7000 And then the remaining £1500 of our deposit on completion in February. As it turned out we had enough to pay the full deposit on exchange but if we'd needed the extra 2 weeks or so we could have had it.

HampshireH

For the Mortgage you may need to evidence the full deposit is available when applying.

I am at this stage now. They want to see the full deposit in account for consideration nothing less.

I have it but was also hoping to use another months wages to top up - not possible now the application is in.

HampshireH

Probably depends on the lender

FTB89

Thanks everyone. I!!!8217;ll speak to my mortgage advisor tomorrow - was just being impatient over the weekend! I!!!8217;ve already paid a £250 early bird reservation and then expecting to pay between £500/£1000 to reserve - what did everyone else pay?

Nicola83, did you have your full deposit ready when you were sorting out your mortgage?

Nicola83

Nicola83, did you have your full deposit ready when you were sorting out your mortgage?

No, we got our mortgage offer before we had the full deposit. We didn't even have it all in 1 account when we were doing it. We went with Barclays and we only had to give them 1 months bank statements too.
We sent bank statements on 5th January, and were using our wages from 25th January to top it up to what it needed to be. Our FA explained this in our application and that was obviously enough as we never got asked for further documentation.

Nicola83

We also only paid a £500 reservation fee which the solicitor took off our total deposit needed. So our deposit was £8300 but when it came to transferring it to him we only had to give him £7800.

FTB89

Perfect, thanks so much for your help! Hope you!!!8217;re enjoying your new home?