Buyer still hasn't transferred deposit monies

[areyouhavingagiraffe]

Hi guys, was due to exchange contracts for my Sale on Friday. However Buyer had not transferred the deposit (he is a FTB). He promised me he would transfer on Monday, however it was not done. His Solicitor has not given any indication he does not want to proceed, in fact he promised the Solicitors he would transfer funds yesterday. I left him a pleasant voicemail yesterday (we have spoken/ messaged many times in the past), however he has not returned my call. Getting slightly nervous. He did say he has a Help to Buy ISA, and wondering whether he is just trying to access / transfer the money etc. I haven't any experience of these ISA's so I don't know how long it takes....

Could it be he's made the same error I did when I was a FTB? I was using a help to buy isa, including the top up, as a 10% mortgage deposit, which is all fine.

What I didn't know, until the last second, was that you don't get the top up until completion, and it's standard to give 10% (regardless of your mortgage deposit amount) to your solicitor at exchange.

So I was short by a couple of thousand pounds. Mad scramble to find some extra cash in the short term and all was OK, but if he's suddenly discovered he's unexpectedly short, he might be panicking.

Even of he was short he could have asked for a lower exchange amount. I've had buyers only give 5% at exchange - as long as it's enough to commit them to completion.ive been OK with it.
But your solicitor should be getting on to your buyer's solicitor pronto.

My buyer once transferred the money by some sort of pigeon post system that took days to clear. We were scrabbling to complete before Christmas and it nearly scuppered the whole thing. Keep the faith!

Thanks guys. I think he must be trying to find the cash....I just wish he would be honest so we can come to a solution perhaps? The "no contact" is not helping. My Solicitor is chasing every morning, and afternoon. The EA is also trying to get hold of him. Feeling a bit deflated, thinking maybe he doesn't want to proceed but surely he should say if that is the case!

@Faranth, good point. Yes, it is a 10% deposit he needs to transfer....

He might not have realised that you need to go into a branch to close down a HTB ISA (yes, even during a pandemic).

Sorry jumping on here, ftb also, 10% mortgage deposit is what I need at the end? Or is there something else? Very confused nothings been mentioned

10% is normal, you'll also need to be able to pay any mortgage fees (but you could choose to roll it into the mortgage), surveyor fees, conveyancing and stamp duty.

Well, after all that, we have just exchanged contracts

That's good news

Ah, that's good OP!

@Emma3210 yes, your mortgage deposit goes to the mortgage company at the end, but what no one told me (despite me asking for a detailed step by step as a FTB ) is that just before you exchange you need to send a deposit to your solicitor (usually 10%) which, if you pull out after you've exchanged, the seller keeps. As my deposit of 10% was partially made up of the htb isa top up, which you don't get till completion, I was in a sticky spot for a day or two!

Wow, great, this hadn't been explained at all, and the same as you asked for everything black & white , step by step as a solo ftb. Thanks for your help, should be okay with some slight adjustments before exchange!