Advice on deposit

butterking

Hi there, 
Hoping somebody could help me a bit with this? We have found a house and have had an offer excepted. At the minute we have just over 5% deposit that we would be putting down. 

We can’t complete the sale until June due to our current contract on a flat. If we were able to save more in the meantime, would we be able to put a higher deposit in? When we apply properly for the mortgage, will we have to just go with our current deposit or will we be able to negotiate that closer to exchange/completion?

thanks 

Kyresa

The contract will specify a 10% deposit, you'll need to hope your seller accepts less on exchange.  
The implications with a lower deposit, If for some unforseen reason you fail to complete after exchange then full 10% is still due to the seller regardless if they accepted a lower deposit before.  The seller can sue if it isn't forthcoming.  

[Deleted User]

butterking said:

Hi there, 
Hoping somebody could help me a bit with this? We have found a house and have had an offer excepted. At the minute we have just over 5% deposit that we would be putting down. 

We can’t complete the sale until June due to our current contract on a flat. If we were able to save more in the meantime, would we be able to put a higher deposit in? When we apply properly for the mortgage, will we have to just go with our current deposit or will we be able to negotiate that closer to exchange/completion?

thanks 

Is the vendor aware you don't want to complete until June?
When you apply for your mortgage you'll need to decided how much deposit you're going to put down.  You won't be able to and won't want to start mucking around with your mortgage offer close to exchange and you certainly don't want to start mucking around with it after exchange or the run up to completion.

MovingForwards

Some lenders will let you have a mortgage offer based on 10%, or whatever, deposit IF you can demonstrate you have been saving regularly and will be able to save to money between now and exchange of contracts.

butterking

Lover_of_Lycra said:

butterking said:

Hi there, 
Hoping somebody could help me a bit with this? We have found a house and have had an offer excepted. At the minute we have just over 5% deposit that we would be putting down. 

We can’t complete the sale until June due to our current contract on a flat. If we were able to save more in the meantime, would we be able to put a higher deposit in? When we apply properly for the mortgage, will we have to just go with our current deposit or will we be able to negotiate that closer to exchange/completion?

thanks 

Is the vendor aware you don't want to complete until June?
When you apply for your mortgage you'll need to decided how much deposit you're going to put down.  You won't be able to and won't want to start mucking around with your mortgage offer close to exchange and you certainly don't want to start mucking around with it after exchange or the run up to completion.

Hi, thanks for your response. Yes the seller is aware of this. We have also had a DIP for a 95% mortgage. I just wasn’t sure whether if we save more in the meantime, would we then be able to add some more to that deposit with the mortgage company and get a better rate for mortgage at a later date. By the sounds of it, our initial deposit will be locked in when applying for the mortgage itself and then if we had more money it would mean re-negotiating the mortgage close to completion, which does not seem very wise. Does this sound about right?