FTB has 100% mortgage so no deposit.

kjrv

We have recieved a letter from our solicitor today informing us that our FTB has got a 100% mortgage (first we have heard of this in 8 weeks - survey done, she has her mortgage offer etc...) and is unable to put down the 10% deposit that we were going to use to put down on our house we are buying upon exchange.

I always thought that if you had a 100% mortgage the lender would pay out 10% on exchange and the rest on completion, but apparently this isn't the case.

We were due to exchange early next week with completion 2 weeks after, so can we exchange without a 10% deposit, or do we have any other options?

Thanks

Lemoncurd

I'd also always assumed that the lender provided the deposit with 100% mortgages so don't know how that works.
When we instructed our solicitor she wrote saying that in our case she was going to ask the vendor if we could only put down a 5% deposit. Not sure why she did this because we hadn't requested it or anything but anyway we only paid a 5% deposit at exchange (but if anything goes wrong and we don't complete we will have to come up with the additional 5%). Not sure if a reduced deposit somewhere along the way would make a difference in your situation?

kjrv

Hi

The trouble is we don't have any money what so ever to put down as it is tied up in or property, just hoping that our buyer will let us exchange without a deposit.

payless

so long as everyone agrees ( upwards as well, unless you have some cash to keep the upwrd chain happy) you could exchange with no deposit, although even on a 100% mtg , the FTB solicitors will usually offer any fees they have collected ( stamp duty, legal fees etc ) as a deposit

In the past I have known some lenders willing to advance the deposit, but that was rare.

some buyers borrow the fees thes days, so even these aren't always available. Brokers and agents don't always understand the systems themsleves ( or if they do, don't pass on the info. )

I used to work in a area where some solicitors would actively advise sellers to refuse offers from 100% buyers ( even if nothing esle oin the table)

divadee

we had this problem when we sold.


Our solicitor used their solictors fees, stamp duty money etc...... as deposit. it wasnt quite 10% but as least it showed a sign of willing from the buyers.

Then we completed 2 days later with no problems.

Hope that helps you. If you wanna know anymore let me know.