mortgage deposit

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arcon5
arcon5 Posts: 14,099 Forumite
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Just wondering, when you apply for a mortgage and get your offer in principle, say you tell them your deposit is £20k, do you need the cash in the bank then or at point of completion? E.g. atm we have £13k, but looking to complete around December which at that point at our current rate of saving we will have achieved the 20k

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  • ACG
    ACG Posts: 23,727 Forumite
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    Depends on the lender. Some will ask for proof and need to see it all, others will be happy to see that you are nearly there and can get there and others will not ask for proof of deposit.
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  • ethank
    ethank Posts: 2,197 Forumite
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    Your solicitor however will not exchange until you either have that deposit, unless you can get an agreement to reduce the desposit.
  • 8ofspades
    8ofspades Posts: 141 Forumite
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    arcon5 wrote: »
    Just wondering, when you apply for a mortgage and get your offer in principle, say you tell them your deposit is £20k, do you need the cash in the bank then or at point of completion? E.g. atm we have £13k, but looking to complete around December which at that point at our current rate of saving we will have achieved the 20k

    Worth noting most mortgage offers only last 6 months max so if you're not ready to complete in December, your offer might expire.
  • nattybuk
    nattybuk Posts: 52 Forumite
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    We’re £1800 short of our deposit and it will only take one payday to reach that but the lender won’t give us a mortgage offer until we have the funds.

    Solicitor was the same regarding exchange of contracts.
  • LawAbiding
    LawAbiding Posts: 295 Forumite
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    Interesting.

    I assume if the deposit is coming from a property sale which is also going through, then the solicitor would control the finances around this.
  • Bennettxoxo
    Bennettxoxo Posts: 137 Forumite
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    We had to provide proof of our deposit before the bank would lend to us.


    It mostly depends on the lender.
    Mortgage start: £121,500 Dec 19
  • memberme
    memberme Posts: 213 Forumite
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    My understanding is that 1st time buyers require a deposit up front.


    Those selling one house to buy a larger house, would partly get their deposit from those buying the one they are selling and this is put towards the rest at time of completion. Often if selling and buying at the same time, deposits don't actually seem to exist in reality and it all get's sorted at once at the same time/completion
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    You need 10% deposit to exchange contracts. This can be lower if all parties agree but people using cash for deposit need to have this in place for exchange of contracts.
    Homemovers exchange with equity in the property or with cash depending on how the numbers add up.

    The lender is the one that decides if they will lend based on their own criteria. There are some lenders that dont ask for proof of deposit, some that require it to be in place on day1, some that even require it to have been in place for 3 months prior to application date.

    I do a lot of mortgages for ftb's who are still getting funds together. It all comes down to plausibility. If you have saved £2000 over the last year and claim you will have another £15,000 by december its not really going to happen. If you are £1500 short and saving £1000 a month then it will be fine (depending on the lender again)
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