Deposit

The amount of deposit you will pay will depend on how much you are borrowing from your lender (if applicable). You should seek advice from your mortgage broker, lender or bank as to what amounts you can borrow and what deposit you will need to save to buy a property. When you exchange contracts, the contract will suggest that the buyer must pay a deposit of 10% of the purchase price with the balance money to be paid on completion. If for any reason you do not have a deposit of 10% then the seller will often accept a reduced deposit to allow the matter to proceed. Your Conveyancer will negotiate this on your behalf prior to exchange of contracts.

If you are getting help from a family member with your deposit this is called a “gifted deposit”. We understand that often first-time buyers need financial help to buy their first home and we have a process in place to ensure that all the information we need is collected at the outset of your case to avoid delays. If you are obtaining a gift, then you need to let your Conveyancer know at the time you instruct, and we will get everything underway for you. You should ensure that your mortgage broker and/or lender are given full details of any gift you are receiving.

Any deposit you are paying for the purchase of a property will be paid to your Conveyancers just before exchange of contracts. You will receive a financial statement (sometimes referred to as a completion statement) which will confirm how much you need to pay. It is extremely important that you understand the risk of cybercrime and fraud when sending large sums of money through the banking system. You will receive information from us at the outset of the case on how to prevent cybercrime and fraud and what to do and what not to do when sending funds. You should always check any bank details with the firm acting on your behalf and you should never send funds if you receive an email or phone call from someone suggesting that you need to send funds to a different bank account. You can obtain further information on cybercrime at:

https://www.nationalcrimeagency.gov.uk/what-we-do/crime-threats/cyber-crime

https://www.actionfraud.police.uk/a-z-of-fraud/property-fraud