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5% deposit contributions

1 reply

danielleja · 05/09/2024 12:27

Hi All,

I have been searching online and can't find much information and hope someone can with who has experienced it already!

We have found the perfect new build home! We can only afford it if we put down a 10% deposit and the developer puts down a 5% deposit contribution.

I always thought the developer would pay the 5% on exchange of contracts as this is when the deposits are sent over. On and email from them today it states '5% deposit paid as an allowance on completion'

Now I am confused as to what that means in terms of getting a 15% deposit together when applying for the mortgage!

look forward to hearing your replies!!

Danielle

OP posts:
TheOneWithUnagi · 05/09/2024 12:42

A mortgage deposit is a different thing to the deposit you pay on exchange.
It's usually just 10% you need on exchange, if buying a new build the developer should let you know what's required on exchange

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