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FRB- stupid question???

(8 Posts)
Tigerlilly17 Thu 26-Oct-17 13:00:29

We own our home outright and are buying a new house. We sold ours at same time we offered on another and we are using the sale money as a huge deposit for new house. We told the bank and the solicitors that we are using the house sale money as our deposit, but I’ve read on forums that on exchange people pay deposits etc. Our seller of house we are buying is purchasing new property as a cash buyer from the sale and our buyer of our house is a FTB also. It’s got me worrying about things as I’m using the sale of this house as my deposit, and I’m confused about if more money is needed for when we exchange?? Sorry if it’s a dumb question, first time buying and selling

Tigerlilly17 Thu 26-Oct-17 15:55:32

Anybody please?

Lucisky Thu 26-Oct-17 18:50:16

Speak to your solicitor, you may need a bridging loan.

MiniMum97 Thu 26-Oct-17 18:58:30

This is normal practice and we did this when buying our current property but didn’t need a bridging loan. Can’t remember exactly how it worked though.

5amisnotmorning Thu 26-Oct-17 19:00:56

Don't worry - speak tp upur solicitor but the ftb deposit usually grts passed up the chain and the difference between the amount passed up and ypur 10pc is what you would be liable for if completion does not go ahead. They are used to this!

Tigerlilly17 Thu 26-Oct-17 19:04:02

Thanks guys.

ScrubbyGarden Thu 26-Oct-17 20:56:48

And it’s common practice to not add the top up to get it to 10%! (Your solicitor will sort this if you ask)

BewareOfTheToddler Thu 26-Oct-17 23:31:41

Yep - it goes up the chain. All we had to pay prior to completion was a deposit to the solicitor, a fee for the mortgage product, and the removal firm fees. Everything else was deducted from the proceeds of the sale and our buyers' deposit was passed up the chain to our vendors.

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