house purchase - deposit on exchange

[CAH706]

Having not bought a house for over 12 years* and being a little stupid I hadn't realised that I would need to pay a deposit on exchange of contracts.

I will speak to my Solicitor tomorrow but before I do what's the usual position with this? Can the deposit from the people buying my house part fund this deposit or do I have to find the 10%? I have the funds but will need to raid my savings for c.60k which I would rather not do unless necessary.

The house I'm buying will be purchased via mortgage (offer in place) and deposit from the sale of my house.

Any help appreciated.

• I have never previously had to pay a deposit before on any of my houses

[IanA2]

It's been 16years since I last bought a house, but iirc all previous purchases were 10% on exchange.

[CAH706]

I may have paid a deposit before but didn't last time as we exchanged and completed on the same day.....my memory is clearly failing me.

[Cyder]

We exchanged on a new build back in November and completed in April, we agreed with the developer and solicitors to exchange on 50%.

[anonymous-user]

OP - yes, the deposit from your buyer can be used as your deposit. This typically works up the chain.

Although 10% is the norm, it can be lower with agreement of your sellers and solicitors.

[CAH706]

50% seems high. Wouldnt you have been better sticking with a lower amount and keeping your money invested for 4-5 months?

[CAH706]

Thanks Garyhun

I guess I'm getting confused between a deposit that is in effect held in case someone backs out versus deposit for the actual house purchase. They on and the same?

[anonymous-user]

CAH706 said:

Thanks Garyhun

I guess I'm getting confused between a deposit that is in effect held in case someone backs out versus deposit for the actual house purchase. They on and the same?

One and the same.

[anonymous-user]

CAH706 said:

50% seems high. Wouldnt you have been better sticking with a lower amount and keeping your money invested for 4-5 months?

Guessing that's a typo. Should read 5% is my guess.

[CAH706]

Thanks really appreciate the advice