To ask if anyone can help with this property/finance question?

[Guarentinaflo]

Short story is that we have a 95 per cent mortgage in principle. Looking to buy a house around 600k. Deposit of 30k. Got that, just, plus stamp duty and legal fees.

Seller wants 10 percent deposit for exchange deposit. So 60k.

This is our first experience of buying in the UK so still confused by all the costs. There’s a chance we could temporarily access the extra deposit through a loan from family member IF we could pay it back quickly. My question is can we pay a 60k exchange deposit to the seller and then get 30k of it back once contracts are signed, as we only need a 30k deposit for the mortgage lender?

Hope that makes sense and thank you.

Hi- it is possible to pay a less than 10% deposit on exchange In circumstances like yours. Your solicitor would need to let the seller’s solicitor know before exchange but it would usually be agreed.

if they wouldn’t agree then it is possible to exchange and complete on the same day so no deposit is paid- not ideal and is more stressful but not uncommon

Thank you!

You would pay the relative back from the mortgage loan once it is released.

I don't know if this is possible, don'tthinktge mortgage company will lend you 95% if you have paid 10% deposit. Some banks will offerca separate loan for the extra amount. Do you have a mortgage broker? If so, talk to them for advice.

Why does the vendor want a 10% deposit? Do they think you’re not being serious by putting down £30k? Could your solicitor have a word?

I don’t know, I would have thought 30k would show we are serious!

Usually you would negotiate smaller deposit for exchange (you would be liable for the full 10% if you failed to complete). This is nothing to do with your mortgage deposit. You don't want to be borrowing money from family for this! The AML trail would be troublesome and you'll cause difficulties with your solicitor & reporting to lender.

Speak to your solicitor. It happens all the time.