Non FTB - Equity in current house - Do I need 20% deposit for next purchase?

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dubdub123

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HI
I am in process of selling my current property (offer in place pending exchange of contracts) and have had an offer accepted on the property that we want to move into.
I've paid a small holding deposit to the estate agent .

When we get to contract exchange, will I need to have remainder of deposit to make up 20% of new purchase price? In reality my equity will cover that but my current house won't be sold, so my equity won't be available at that time..

Can anyone advise on this? In a case when houses are being sold/purchased ? What have others done in similar circumstances? I will be checking with solicitor however would really like to hear how people handled this in practice. thanks
 
You will need to have signed an irrevocable contract to sell your current house before you’ll be able to use equity as a deposit. Alternatively you can apply for an exemption through a mortgage broker so that you get a higher mortgage I.e. 85-90% with a view to reducing it with your equity.
 
OK thanks for your input. Checking this now with solicitor and if other party are ok with it, seems like best option.
One other option I have is to draw down some overpayments that I made, but this would push my monthly costs up . I'll check on that with the broker as well in case that could cause an issue.
I did check about exemption to bring me up a slight bit but not in the running for that , but I'm ok with that overall.
 
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