Prehaps you could help me answer an argument me and my wife are having here,
Since this is our first "sell" and "buy"
We are currently selling our house and are looking to buy a new property, From a point of view of deposits and mortgages, Does the system work like this:
1) We would Get a deposit from the buyer of our current property.
2) Get a mortgage for the entire value of the new house (100%).
3) The Deposit from the buyer of our property is given as a deposit for our new property.
I have no idea how the system works, prehaps someone could help me out here
You are very probably not going to get a mortgage for the whole value of your new house, although its possible, since you should have some money you made from your previous one, unless your other name is 'biggirlsblouse' (private joke, he may come in shortly)
The general idea is, that you use the equity from the sale of your house to fund part of the payment for the new one, and a mortgage for the rest. Lets say you bought at 150, sell at 200, and are buying at 300. When you sell, you will get 50 (200-150), so now you need a mortgage of 250 for the new house.
Whatever your mortgage is, that is separate from the question of the deposit which is just there as a guarantee that you wont back out. Deposits are negotiable, that is, it used to be 10% or so but as prices have risen this becomes more difficult to do, so you need to come up with something acceptable to all parties. I cant recall if you can cascade deposits up the chain, I think you can, eg lets say your buyer gives you 15k deposit, you then add 15k to make a 30k deposit for the house you are buying, and so forth, I am sure soemone will be along shortly to say if this is the case. In any event, getting hold of this chunk of money before you have sold can be an issue.
Ok that kinda makes sense, I get confused with mortgages... We dont really want to hand it over to a broker as there might be a chance we could use our existing lendor
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