Booking Deposit and 10 per cent deposit

T

thejuggler

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We are looking at buying in a new development which won't be complete until November.
Auctioneer tells us that booking deposit is €10,000 euro and 10 percent deposit will be payable at contract signing stage. There will also be stage payments as the house takes shape.

Given that most of our money is tied up in our house how do we go about financing the payments before we sell our current home and take on the new mortgage? We can cover the booking deposit ourselves. Can the 10 percent deposit and stage payments be paid by drawing down the new mortgage before we sell our current house?
 
You can't get your mitts on the mortgage money until completion but you have a number of options;

1. Ask your solicitor to negotiate a lower deposit with the vendor's solicitor - 10% is traditional but not mandatory.

2. Ask for a top up loan on your existing mortgage. Lenders are normally happy to do this if you are taking your new mortgage with them.

3. Get a short term unsecured loan from your bank.

Kind regards,

Sarah
 
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