Deposit on house purchase

Vicis

Hi there.

On a house purchase in England, I would like to proceed as follows:

• Deposit 10% of the house price. This is the deposit required on contract exchange.
• On completion, my idea was to then have 60% of the remaining 90% paid by other savings and 40% of that 90% paid via mortgage. 

I have a question.  Who decides whether the above Deposit should be 10% or less than that?  I presume it is something which needs to be agreed with the seller.  If yes, would it be better to agree this before making an offer?  Any advice?  Thank you!

grumpy_codger

I think 10% is a usual/typical/default amount unless a buyer and a seller agree otherwise. If you are happy with 10%, make an offer and if the seller wants a different amount they will tell you.
Having said that, I don't understand what difference this can make unless you are likely to change your mind after the exchage and lose your deposit.

saajan_12

Vicis said:

Hi there.

On a house purchase in England, I would like to proceed as follows:

• Deposit 10% of the house price. This is the deposit required on contract exchange.
• On completion, my idea was to then have 60% of the remaining 90% paid by other savings and 40% of that 90% paid via mortgage. 

I have a question.  Who decides whether the above Deposit should be 10% or less than that?  I presume it is something which needs to be agreed with the seller.  If yes, would it be better to agree this before making an offer?  Any advice?  Thank you!

Ok so you just have 64% equity and a 36% mortgage overall. Thats fine provided you meet the lender's minimums. 

The 10% is very standard, doesn't usually need mentioning. Even if you had a bit less eg 5-10% that's fairly common and just negotiated with the solicitors closer to exchange - usually just arises when there's a chain, and people don't really think that completion won't happen so it doesnt' matter.

If you have that much savings, it sounds like 10% won't be an issue with you so wouldn't even bother complicating the offer with this.