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Mortgages - Moving Home

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freelanderpx54:
When we moved we had an absolute nightmare. We raised the deposit via a buy to let mortgage (old house was virtually paid for) so that we could guarantee getting the new house. We thought that we wouldn't have a problem selling the old house and went through with the new mortgage and moved.  We ended up selling the old house to one of those companies that advertise in the free papers, you know the sort, we will buy your house. We had big problems with them but eventually the sale went through.

The buy to let option is cheaper than a bridging loan especially if you choose a lender that doesn't charge a redemption fee. We used the Chelsea Building Society for the buy to let and Northern Rock for the new mortgage

Range Rover Blues:
Crikey, I've not heard of that one before, paying a deposit :shock:

It's a buyer's market, go and find yourself another house and tell him to stuff it ;)  If you had that kind of money kicking about you wouldn't have a mortgage would you :?

Boggert:
I would say No they can get the money when the chain goes through like everyone else.

When I was a surveyor I worked in agency and have never has anyone ask for a deposit. I would not pay anything to the solicitor or agent. Just say all you moeny is tied up in the house.

Any deposit should be paid by the Solicitor on exchange and before completion and not before the exchange.

Buddha:
I moved house a year ago, and recall there being something like this which I queried with my solicitor - it was all a bit of a non issue really.

I believe it all depends on the equity that you have in the house you are selling. If there is sufficient funds that will be raised by the proceeds from the sale of your house that you will be left with at least the 10% deposit, then there should be no need for you to find this money in advance of completion. However, if that is not the case, then as a first time buyer would be expected to pay a deposit, then so would you need to cover the deposit.

But as others have said, speak to your solicitor.

LiftedDisco:
Sorry to say, but strictly speaking, the 10% deposit thing goes through the chain...

Given that you have moving costs, stamp duty to pay, solicitor's bills and all the other stuff, the generally accepted view is that it now costs the wrong side of £10k simply to move.

When we moved the first time, we negotiated a deposit of 5% when agreeing the purchase cost of the house that we were moving into and the solicitor agreed that this was largely a 'paper' transaction on exchange.  There is a risk that it might all go Pete Tong after exchange but this is usually accepted by all involved.

Our last move was rather more difficult - we wanted the house (as in would not, could not walk away from it) and the vendor insisted on 10% deposit.  Ultimately, it all comes out level...

Best of luck

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