10% Deposit on House Purchase

K

Koplegend

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I am in the middle of buying a house via a 100% mortgage.

The seller is looking for a 10% deposit on the house, but seeing as the mortgage is 100%, I hadnt thought about getting 10% cash available. Does anyone know if banks generally allow a drawdown of the mortgage to pay the deposit in advance of the closing of the deal?? Presumably the bank wouldnt be secured at that point so curious as to whether they still advance a deposit ?
 
Koplegend said:
I am in the middle of buying a house via a 100% mortgage.

The seller is looking for a 10% deposit on the house, but seeing as the mortgage is 100%, I hadnt thought about getting 10% cash available. Does anyone know if banks generally allow a drawdown of the mortgage to pay the deposit in advance of the closing of the deal?? Presumably the bank wouldnt be secured at that point so curious as to whether they still advance a deposit ?
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BOI will allow you to borrow the 10% at a higher apr rate.
 
There are several articles in the Indo (free registration required) dealing with how 10% deposits can be arranged in conjunction with 100% mortgages in case that's of any use.
 
I heard that you might be able to negotiate through your solicitor, skipping the 10% and going straight for the 100%. As you have approval for the full amount anyway. Has anyone else heard something along these lines??
 
Yes i have done this, PTSB offered me a term loan deposit for the 10%,
As i was more or less ready to go, i.e. i had my life cover and home insurance done, the vendor agreed that i didnt have to pay the 10% deposit when signing contracts, as it was only a matter of 2 weeks before the full amt was drawn down.

Its worth a try, not all solicitors agree to this
 
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