Buying/Selling Deposit etc

The_Realist

Hi,

Apologies in advance for what I deem a silly question, but would appreciate comments:

Situation
Buying a house for £540k.
Selling our current house for £265k (we are mortgage free here).
The house we are buying is our 'dream house'.  We saw it and offered before putting ours on the market (on being able to proceed without selling our own home
With additional savings, we have been offered a mortgage of £300k (deposit of £240k).

The mortgage approval process has been long and painful, but now all approved.  Both transactions are now proceeding in line (touchwood) so we look like in theory being able top use our current house proceeds to cover the deposit (although it's actually higher than the mortgage).  We've been led to believe by our mortgage provider that in this situation we can't essentially put more deposit down (bizzare I know, but would mean starting the whole lengthy risk assessment again!?!?).

So assuming all goes well, I guess we can use the £265k from the house (less fees, stamp duty, etc) for our new deposit with any small residual amount (not done the maths but suspect perhaps a few grand) being left behind and returned to us?  We'll have a large mortgage but decent savings we've then not used as such.

Stupid question, but does this all make sense.  Can you see any issues as such?  We have our original fall back plan should our sale fall through.

Many Thanks

TadleyBaggie

The deposit is paid when you exchange, you won't be getting £265K deposit from your buyer at that point. So what actual deposit are you getting from your buyer, which will be passed up the chain?

Upon completion the proceeds from your sale (i.e. £265K minus the deposit) will be passed up the chain (along with the mortgage amount) to make up the final sale price of the place you are buying.

The_Realist

Yes so we will be getting 10% (£26.5k) from our buyer at exchange.  And will then be depositing £54k, so using £27.5k of our savings at the exchange stage.

The_Realist

I assumed in theory at completion, we can then transfer the remainder of our current house value onto our new house....as I say it's silly question season!