really stupid question

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OK - I am asking here because I am embarassed to ask a question I am sure I should know the answer to to a "real" person (no offence!).

I know that when contracts are exchanged a deposit is paid - about 10% ? If you are in a chain, I presume all exchanges happen on the same day, so there is no equity available yet from the sale property.

If you dont have this in cash, where does the money usually come from? Can it be released early from the mortgage or do you have to arrange a bridging loan from the bank.

As you can tell, I dont get it!

My understanding is that the deposit moves through the chain on the exchange day - so you don't need to find that amount unless you are FTB and bottom of chain. at least I HOPE that's what happens or we need to find a large chunk of dosh next week

TBH, last time we moved I don't remember having to pay a deposit on exchange. Basically everything happened on completion day. We were in a chain of about 3, so we had to wait for the monies to get transferred from bank to bank etc. I think we were last in the chain so we finally got the keys from the estate agent around 4pm.

Thanks - I dont remember doing this before either - but it was a long time ago, and my memory is not what it was.

Yes the deposit moves through the chain. Often the 10% deposit from the person at the bottom, who is usually buying the cheapest house, isn't enough to cover the 10% on the most expensive house in the chain, so in that situation the solicitprs will negotiate a smaller 5% deposit to be paid on exchange. If it all goes tits up though between exchange and completion each party is still requried to pay the 10%.

HTH

Exchanged yesterday and completing on Mon so pretty up to speed on this. Our deposit was the balance between our buyers deposit and 10% of our purchase price iyswim

Thanks. Good luck with moving. You'll have to change your name next week.