Wallace & Co. Solicitors and Notaries.

Q6: I am getting 100% mortgage. Does this mean my lender will pay the deposit for me?
A6: No. The Seller is not aware of your financial arrangements. When contracts are exchanged the Seller expects a deposit of 10% of the price. If you are a first time buyer with a high percentage mortgage the Seller may accept a lower deposit but this is never lower than 5%.
The mortgage money is only given on completion, a few weeks after exchange of contracts. It is, therefore, not possible to use any of the mortgage money to pay the deposit. You must either ask your bank for a bridging loan, or use temporarily the money you have saved for stamp duty, legal fees, land registry fees, furniture, etc. Even if the Seller accepts less than 10%, you are still liable for the full 10% if you should fail to complete the contract.

If you are selling and buying you will receive a deposit from the sale of your property and it is usually possible to use this towards the property you are buying. However, if you are buying for more than you are selling, you will have to make up the difference. If it is not possible to use the deposit from your sale (some solicitors still insist that the deposit cannot be used) then you must find the money from your own resources or take a bridging loan. It would be best to agree this in principle with the bank at an early stage to avoid delay later.

Your bank will want an undertaking from us to repay the bridging loan from the sale proceeds of your house or the new mortgage advance. It is, therefore, important that you ask the bank to send the undertaking to us as quickly as possible.

Wallace & Co., Solicitors and Notaries. 11a Station Parade, Balham High Road, London, SW12 9AZ (entrance in Ravenstone Street).
Tel: 020 8675 6755. Fax: 020 8675 2001.
email:    Is available     

South london solicitors South london balham solisitor balham solicitors clapham wandsworth battersea streatham brixton putney tooting bec colliers wood vauxhall stockwell get new deeds 
new land certificate make a will living will power of attorney transfer of property safe storage deeds storage will storage county court civil case claim money Balham Battersea Wandsworth 
Wallis Bromley Wallace Phil Philip Streatham Wallace LLP Solicitors Notary notaries London South London South West SW