Buying - deposit to vendor always needed?

[Pickle131]

I'm in the process of buying a new house and have just seen information from my solicitor that says their contracts have the standard practice wording that a 10% deposit needs to be paid to the vendor's solicitor on exchange. In order to buy the house I'll be using equity from my current house and a mortgage for the difference. As such I won't have this 10% floating around until completion (when our buyer pays us + our mortgage pays out).

In people's experience is this normal? If so, can you get the money as an advance from the mortgage company?

I have cash for the fees, SDLT etc but wasn't aware of this deposit issue. I know you normally need a deposit for a mortgage but this one threw me! Advice gratefully received!

Now I'm wondering whether the deposit would come up the chain from my buyers (who are sitting in rented right now). Hope so!

Don't worry about it. You don't need the deposit in cash if you're selling and buying... but if you're worried have a word with your solicitor. They should be able to explain it to you.

Yes it moves up chain. Although I had no chain and no cash deposit so we exchanged without.

Thanks both, you've just stopped me having a Saturday night freak out - not a good time to need the solicitor!

I've recently asked my solicitor this very question. Basically the first person in the chain usually pays 10% and that money moves all the way up the chain at exchange. So it's usual for the other people in the chain to receive and pay less than 10% at exchange. Some people top it up with their savings but this is not normally how it's done.
HTH

It does help, thanks Bimba. If only the 'helpful notes' from the solicitor had been more helpful!