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First time buyers- help
Ek234
Posts: 13 Forumite
Hello I am wondering if someone could make things a little clearer for me.
Myself and my partner are first time buyers, in the process of buying a house, searches have come back and now currently waiting for a lease information pack from the sellers solicitors.
Mortgage offer has come through etc, When it comes to exchanging, (this is where I’m confused) do we pay the 10% deposit of the property price to the solicitor then afterwards pay the solicitors their fees?
On my mortgage guide it says on exchange of contract we pay our deposit then on completion we pay the balance (which is the difference between the loan amount agreed by the bank and the price of the property) isn’t this exactly the same as the deposit? Just got me panicking thinking we need to find another £20k from somewhere?
Could someone please clear this up for me in simple terms? Thank you
Myself and my partner are first time buyers, in the process of buying a house, searches have come back and now currently waiting for a lease information pack from the sellers solicitors.
Mortgage offer has come through etc, When it comes to exchanging, (this is where I’m confused) do we pay the 10% deposit of the property price to the solicitor then afterwards pay the solicitors their fees?
On my mortgage guide it says on exchange of contract we pay our deposit then on completion we pay the balance (which is the difference between the loan amount agreed by the bank and the price of the property) isn’t this exactly the same as the deposit? Just got me panicking thinking we need to find another £20k from somewhere?
Could someone please clear this up for me in simple terms? Thank you
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Comments
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On exchange 10 percent is paid (unless another sum has been previously agreed) , this is the deposit, On completion, money is for the payment of the property minus deposit paid , any stamp duty if applicable and legal fees that you owe to your solicitor0
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So the money of the property price minus the deposit would this come from the lender?0
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the difference of the agreed price minus 10 percent is what's payable completion day plus legal fees and comes from wherever you are obtaining the finance0
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If that's the size of loan you applied for, yes.
Before you exchange you will have given the contractually agreed deposit to the solicitor (usually 10%).
Just before completion your solicitor will get your loan money from the lender, and if you were planning on having a deposit >10% the rest of the money from you.
On completion your solicitor gives the loan money and the total deposit money to the seller's solicitor.
The confusion you have comes from 'deposit' meaning two things: one is the money in the contract that you will lose if you do not complete, the other is the amount that you need to add to the loan to give the total purchase price - these do not need to be the same amount, but the 10% bit counts in both boxes.0 -
Ah great thank you everyone for clearing up my confusion
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