Hi I paid a €5000 booking deposit to EA, we have 100% approval - who gives us the €5000 booking deposit back? Does it come through the mortgage provider or EA?
Hi I paid a €5000 booking deposit to EA, we have 100% approval - who gives us the €5000 booking deposit back? Does it come through the mortgage provider or EA?
Is this a new build? If so, the builder will usually require a 10% deposit when contracts are signed. You can deduct the 5k from the 10%. Even though you've borrowed 100%, the lender usually won't let you draw this down until the property is complete. Therefore, if the builder looks for 10% you have to borrow this elsewhere. When the solicitor draws down your cheque, s/he pays off the loan and the outstanding balance to the builder.
jhegarty is right. I have just bought a house and we got 100% mortgage. We paid 5000euro deposit and then 20,000 drawdown from the mortgage upfront then when we go to drawdown the final lumpsum,we owe the builder 375,000 but our mortgage wil give us 380,000 so the solicitor will take their fees out and give us back the rest.
Smiley25, If you don't mind could you say who gave you the loan. A lot of people have posted here thinking that once they'd been given approval for 100% mortgage that they'd be allowed draw down the mortgage in two moieties, i.e. one for deposit and again upon completion. Instead they were asked to take out short term loans for the deposit at high intrest rates. If you know a lender/s who don't do that, it might be beneficial to others searching the site.