When is the Mortgage Deposit paid?

chriz1000

I have found a property, had the offer accepted and just waiting for the chain to finally end. I have a self cert mortgage in principle, my question is at what stage to I pay my 10% deposit and to whom?

Richard_Webster

When your solicitor gets you to sign the contract for the purchase he will want you to pay him the deposit so that he can pass it on to the seller's solicitors.

Private cheques are not generally acceptable on exchange of contracts so your solicitor will have to send his client account cheque to the seller's solicitors and to do this he will need the money from you in time for clearance.

If the difference between the purchase price and the mortgage is more than 10% he will not want nay more than 10% at that stage, but if the time between exchange of contracts and completion is expected to be short then he will want all the money plus costs stamp duty land tax, etc fairly quickly.