Mortgage Approval in Principle received

M

Mark_jmc

Registered User
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Hi All,
As per title we have received mortgage in principle - we are selling our house and purchasing a new house. On the letter one of the conditions is that we have a 24% deposit toward purchase of new house. As we will be making money on the sale of our house this wouldnt be a problem but ideally we would like to pay 20% and free some cash up for some improvements we would like to do.
Is the requirement of 24% deposit standard enough or should I try to push for 20%
The mortgage we would be taking out would be 50k less than what we were approved for in principle if this helps

Appreciate any thoughts etc,
Mark
 
Hi Mark,

We had similar situation with ours, the extra % we had to have/show was for the legal costs and stamp duty. We couldn't go to offer stage without this being shown in our bank account and confirmed by our solicitor
 
A deposit of 24% is not standard at all, but you are expected to have funds for stamp duty and legals as mentioned above. I would say that either this figure was an error, or the bank calculated that you will need a deposit of 24% to buy a property for the price that you advised, i.e. purchase price less mortgage approved = 24%.

Surely someone in the bank could answer this for you?

Best Regards,
Dave Curry, Irish Mortgage Corporation
https://ie.linkedin.com/in/davecurryirl
 
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