Exchange deposit vs completion deposit.

NewHouse86

As a FTB I have received some incredible help on this forum
alresdy, so thank you. I have in the past few hours been made aware of exchange deposits and completion deposits. 

My situation is this- I have ~£9,500 in a NatWest help to buy ISA which is eligible for 25% bonus on completion. I have ~£11,500 in a general savings account. The house I wish to buy is £147,500. NatWest want a solicitor letter confirming I will receive a bonus on completion as i declared deposit of £22,500 (taking into consideration the HTB ISA bonus) but only physical cash of £21k. As the HTB ISA is with NatWest who are also (hopefully) my mortgage provider, should I really need a letter? And also, now I know the existence of exchange deposit which I’m told is 10% of house price, I do have enough physical cash to pay for that 10% and then at completion when bonus is paid I will have the £22,500 which is the deposit I claimed I would have. In fact just over. 

Can anyone confirm my ramblings or please tell me if I have it completely wrong and misunderstood it entirely.  

Thrugelmir

Nat West require assurance that you will be in a position to complete that's all. The solicitor will need to apply for the bonus on your behalf. 

davidmcn

I really hope you're not expecting to pay for it with "physical cash"!

NewHouse86

davidmcn said:

I really hope you're not expecting to pay for it with "physical cash"!

YEAH, I’m gonna stroll in with my piggy bank and pay it all in 1p and 2p coins.

I was trying to emphasise the difference between the money I have and the money which I would be entitled to through the HTB ISA which is not received until completion. So technically doesn’t exist yet.