Booking deposit query

kkmaan

Registered User
Messages
57
Quick question on the above. What way does a booking deposit work.
we are just sale agreed on a house we intend to purchase.
mortgage requires 20k deposit
booking deposit is 5k
Do we get the 5k back after signing contracts? or does the 5k go towards the mortgage deposit i.e. we would then owe 20k minus 5k = 15k?
Thanks in advance
 
The booking deposit is a refundable sum usually paid to the estate agent and receipted to signal an expression of interest in progressing to the contract stage of the process.

Nothing is agreed until contracts are signed and exchanged.

I'm not clear what you mean by mortgage deposit. Is this the money payable to the seller's solicitor forwarded via your own solicitor with signed contracts or is this what the finance company want you to have on deposit to qualify for a mortgage?
 
The booking deposit is a refundable sum usually paid to the estate agent and receipted to signal an expression of interest in progressing to the contract stage of the process.

Nothing is agreed until contracts are signed and exchanged.

I'm not clear what you mean by mortgage deposit. Is this the money payable to the seller's solicitor forwarded via your own solicitor with signed contracts or is this what the finance company want you to have on deposit to qualify for a mortgage?
Mortgage deposit is the 8% of the total purchase price, AIB lend 92%.
What I am asking is, after contracts are signed - where does the booking deposit originally given to the auctioneer go? does this go towards the 8%, or is it given back to me?
 
It is not given back to you.

It is put towards the main deposit.


Example house price 200k


Mortgage 90% = 180k, binding deposit = 20k, not refundable.


You pay 5k booking deposit when house goes Sale Agreed.

Then you pay the balance of 10% at contract stage, ie. 15k.
 
It is not given back to you.

It is put towards the main deposit.


Example house price 200k


Mortgage 90% = 180k, binding deposit = 20k, not refundable.


You pay 5k booking deposit when house goes Sale Agreed.

Then you pay the balance of 10% at contract stage, ie. 15k.

Thanks for that, exactly the info I was looking for.
 
Back
Top