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Selling house then buying new house at the same time as regards deposit
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Usual confusion here between deposit on exchange, and "deposit" being the difference between the house price and the mortgage being taken out.
Deposit on exchange - usually 10% of house price, but can be less, and often is in chains because people's money is tied up in their current house. As others have said, seller can agree to take less than 10% if all you can afford is to pass up the deposit you receive from your buyer.
"Deposit" as in equity you'll have in the house. Suppose you're a FTB buying a house for £200k, and you want to get a mortgage for £150k and put in £50k cash. On exchange, you pay £20k, leaving £180k to pay on completion. Just before completion, you give your solicitor £30k and they get £150k from your mortgage lender. They then hand that £180k over to the seller.
If you're in a chain, remember that although completion for everyone in the chain happens on the same day, the transactions are completed in order from the FTB to the top of the chain. So, your solicitor will have already received your mortgage funds from your lender. Then, when your sale completes they receive the money for that from your buyer. They combine the mortgage with the money received from your sale and send that on to your seller, to complete your purchase.1
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