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hi all,
a question for anyone who has recently sold their house and bought another.
we are selling our house and buying another. when we sign contracts in a few weeks, we will have to have 10% of the purchse price of our new house which will be �30,000. we don't have that kind of money lying around!
but we will be making a profit on our house so i assume that the bank will give us the � 30,000 on the basis that we repay it when the sale of our own house comes thru?
am i right in my way of thinking?
the reason i'm asking is because my mortgage broker says that we will only get a 92% mortgage and that most people borrow the extra 8%/10% from family or get a personal loan.
i'm a bit confused about this whole process!

we were lucky we only had to have 10k for the deposit for the house and we got 2k of that back because we got a higher loan amount, if we hadnt of only had to have the 10k i would still be living at home, i dont know how people afford the 10%

We were slightly different we were first time buyers, but we said that to the other solicitor (through our solicitor) that it would delay the process if we were to come up with the 10% and asked if the people selling to us would just let the sale go through with the �5,000 we'd already given the auctioneer as a deposit. They came back and said no, but that if we could give them another �10,000 then they'd settle for that. As far as I'm aware the 10% is not written in stone anywherer, and if the people selling to you are in a hurry to get outta there then they may waive it to get things moving....

Hope that helps.

M.

hi girls,
yeah i know its not written in stone but it all depends on how both solicitors think and what the buyer thinks of not getting 10% doesn't it?

I put the full amount into my ssia, so that's going to be our house deposit. It's a pain in the butt, but it's a hella lot better than having to get a 100% mortgage!

AislinnS, that's brilliant if you can do that, I take it that you won't need stamp duty as well?

As PinkBride says, it's not written in stone. We sold our house and bought another second hand one. We only had �10k available to put as deposit until we got the cash from our sale. Our solicitor cleared it with the other solicitor. Our solicitor said that it is unreasonable to expect people who are between houses to have 40/50k just lying around that they can hand over as (10%) deposit. Speak to yours - am sure he will be amenable

Other than that, you'll have to get bridging finance fromt he bank which is charged at very high rate

HTH

C

No idea about stamp duty and the like, I'm afraid!

It looks like our first property will be bought in England as well, as h2b's job is there for the next few years. They have a version of stamp duty as well, I'm sure. There's no bloody escaping!

When we were selling our old house to buy our new house we remortgaged our old house and borrowed the extra 10% for the booking fee for our new house. then when our old house sold we repaid the mortgage and then took out a new mortgage for our new house. We had our old house for a good few years and when we remortgaged for the extra 10% we were paying less per month than we were originally paying because the rates had gotten a lot lower than what we were on when we first bought our house. I hope you make sense of this. Maybe if you spoke to a financial advisor or arranged a meeting with bank to discuss your situation. They deal with this all the time. They can offer bridging loans and loans agains the equity of you new house.

pink bride, I think that you'll be able to sort something out with the sellers solicitor....good luck

The bank gave us an interest only bridging loan until our first house was sold and we could repay it, only cost us a couple of hundred and that was for just under �40k.

Borrowed 50k from parents - just short term as when my sale went ahead I was making enough profit on the first property to pay it back in one go

hi girls,
thanks for the info
i knew the bank would give it to us as a short-term loan
but my broker didn't seem to think it was an option for some reason
anyway i think we'll approach the bank ourselves about it

Hi pinkbride

I work for a solictor. These days most people do not have the 10% floating in a bank account.

Ask your solicitors to return your contracts with a small deposit - lets say 3000 to show that you are serious about buying but explain all your money is tied up.

These days it is not unusual for this situation and we do it for client's all the time.

Hope this helps

Richel

we were 1st time buyers as well, just make sure what deposit you need because some places dont ask for 10%