Mortgage Deposit Transfer

tomcrows

Hi, I have a certain amount of required deposit for a house in sterling - at what stage does the bank physically require the deposit? (offer has recently been accepted)

Is the deposit a transfer from my account to bank, or do they actually just need to see proof that I have the deposit on balance and then they release the agreed funds at a specific date?

I want to know given the fluctuations in exchange rates at the moment, and when/if the bank actually need the deposit.

Yourmama

ask your solicitor. it all depends on your individual case and how things are progressing. I was required to pay 10% of the house value pretty soon after sale went agreed with remaining part from my side just before closing the deal.

Gumbo

tomcrows wrote: »

Hi, I have a certain amount of required deposit for a house in sterling - at what stage does the bank physically require the deposit? (offer has recently been accepted)

Is the deposit a transfer from my account to bank, or do they actually just need to see proof that I have the deposit on balance and then they release the agreed funds at a specific date?

I want to know given the fluctuations in exchange rates at the moment, and when/if the bank actually need the deposit.

The bank don't need your deposit. You pay that to the estate agent of the seller through your solicitor.

Usually you will pay a 5k booking deposit and then contracts are drawn up. You pay the balance of the deposit to your solicitor at their offices while signing the contracts.

The bank the release the balance of the funds to your solicitor.
when he/she requests it.

seamus

^^ Yep, you don't give the deposit to the bank.

In most cases, you give the booking deposit to the estate agent and the rest of it to your own solicitor. When you sign the contracts, you solicitor sends over a certain sum to the seller's solicitor, usually 10%.
Before closing, you give the rest of your available funds to your solicitor , who then draws down your mortgage, so your solicitor is basically in possession of all of the rest of the funds.

On closing, your solicitor then transfers the full amount across to the seller's solicitor.

If your deposit is in a foreign account, you will just need to make sure you transfer it to your solicitor with enough time for it to clear.

tomcrows

Thank you all for the responses, much appreciated!!