Trading up and deposit

Hi,
we are selling our house (sale agreed at the moment).
we are trading up and moving down the country.
we understand that we have to pay a booking deposit (approx 3K).
we have very little savings but house price has almost doubled in 5 years so obviously everything tied up in house.
are we still required to pay the 10% deposit?

casper said:

are we still required to pay the 10% deposit?

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It is at the discretion of the seller, but yes, why wouldn't you be required to pay a deposit?

You could try and negotiate them down on the deposit amount, or ask your bank for a bridging loan.

You will have to pay a deposit as this is normal.

You will probably be allowed to tap into into about 80% of the equity in your home to raise the deposit if you bridge but check this out anyway.

If time is against you in relation to applying for a remortgage in order to bridge then just raise the deposit through a top up with your existing lender. This will usually be less onerous to get especially if it is with IIB. Look into it but the deposit is compulsory.

Hello,

When buying and selling recently, we were required to pay a deposit on new property of 10%, which we certainly didn't have lying around!

We approached our mortgage provider when arranging approval for our new mortgage and they provided us with a 'top-up' on our existing mortgage to cover the cost of the deposit for the new place. This worked out a far less expensive plan than opting for bridging or short term loans etc.

It may be an idea to approach your mortgage provider for a similar thing....

Casper, if you have sale agreed on your own house then you will expect to close soon? You could try to put a clause in contract whereby the house you are selling is used as security against the purchase of new house. The key thing for the seller though is that you convince them that you are in a position to close the purchase of their house very quickly i.e. formalise and sign contracts, deeds of transfer in one step, and be ready to hand over the full amount (loan cheque) owed to them.

However, as another poster has written - this is sellers discretion, they may not want to take this risk.

Your solicitor should be advising you on all of this.

take out 100% mortgage and pay no deposit.

Not everyone will qualify for a 100% mortgage.

When we recently did the same, our solicitor negotiated a lower deposit on signing of contracts and we got a temp bridging loan from the CU for this. This was about €12k lower than 10% but still a significant amount.