Booking Deposit & mortgage drawdown

Discussion in 'Mortgages and buying and selling homes' started by Moneysaver, 11 Mar 2019.

  1. Moneysaver

    Moneysaver Registered User

    Posts:
    9
    Hi

    I am a second time buyer and have a question about the booking deposit. Basically, I paid a booking deposit of 10K for my new home.

    However, the remainder of my deposit is coming from the sale of my existing property which will then be offset against the new house. Can I get the 10K back (i.e. if the house is 490K can I draw down the full 80% from the bank i.e. releasing some extra funds ) i.e. releasing my deposit or do i have to drawdown (480K).

    So is it A:

    House Price 490,000
    Deposit: -10,000
    Equity: -96000 (i.e. 20% *480,000)

    Mortgage drawdown: 384,000

    or B:

    House Price 490,000
    Equity: -98000 (i.e. 20% * 490,000)

    Mortgage drawdown: 392,000

    Difference on mortgage balance: 8,000 (i.e. 10000*0.20). Deposit refunded 2,000

    Our full equity is being offset against the new mortgage, so I would like to be in a position where we could draw down the max amount possible as those funds are needed for basic items (blinds, appliances, moving costs etc.,)

    Any advice would be greatly appreciated.
     
  2. RedOnion

    RedOnion Frequent Poster

    Posts:
    2,579
    You can do either.
     
    Moneysaver likes this.
  3. Moneysaver

    Moneysaver Registered User

    Posts:
    9
    Thanks a mill