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Booking deposit

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  • 12-03-2011 6:05pm
    #1
    mrs.f
    Closed Accounts Posts: 13 ✭


    hi all,
    looking for an answer re booking deposits...dont know how they work other than they show your interest & are refundable until you sign the contracts.
    is the booking deposit part of the overall deposit you need for your mortgage??

    eg 4000 booking deposit
    8% needed towards mortgage= 14800
    then balance to solicitor is 10800?
    total 14800

    or is the 4000 seperate... total then 18800???

    thanks :)


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    #2
    Victor
    Registered Users Posts: 78,392 ✭✭✭✭Victor


    Don't hand over any money until you have read the documents and if necessary had your solicitor look at it. Make sure the booking deposit is refundable in all circumstances. In property sales, booking deposits are normally there for two reasons (a) to prove the prospective buyer is interested and has (at least some) money and (b) as it is normally held by the estate agent, it stops the vendor from not paying the estate agent.

    While the booking deposit counts towards the overall price you pay the vendor, you need to consider it somewhat separate from the amount of money that the bank want you to put up, insofar as the relevant percentages are not related. However, ultimately, all the money is going to pay for the property.


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    #3
    bath handle
    Banned (with Prison Access) Posts: 370 ✭✭bath handle


    You pay the balance of 10% on signing the contract. The total.of the booking deposit and the amount handed over on signing will be 10%.


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    #4
    mrs.f
    Closed Accounts Posts: 13 ✭mrs.f


    thanks guys, you have eased my mind, for a while there i was thinking i needed more money for the booking deposit!!:eek:

    so in a case where someone is getting a 92% mortgage would it just be the 8% thats paid as deposit instead of the 10%?

    thanks again!:D


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    #5
    Victor
    Registered Users Posts: 78,392 ✭✭✭✭Victor


    No, you will have to have paid the 10% (assuming this is the figure, it isn't set in stone) at the time you sign the contract. How you finance it is little of the vendor's business* and is up to you and the bank.

    The bank will likely be willing to finance the 2%, assuming they give you you 92% in the first place.



    * You may of course be asked to demonstrate you have the ability to pay the agreed price.


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    #6
    j@utis
    Registered Users Posts: 3,064 ✭✭✭j@utis


    92% come from the bank? wow! is this in ireland? I can't get 60% from any lender with 95k deposit lol. ok that's not funny. or maybe it's a sign not to buy... but my mortgage repayments would be half of what I'm paying for rent now... so tempting...


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