Deposit question/Confusion

Gary 23

Frequent Poster
Messages
56
Hi
I am in the processs of buying a house and i hope someone can give me advice on this situation. we are buying a new house in portarlington for €237000. we are first time buyers. we paid the booking deposit of €3000. now my solicitor is saying that the builders solicitor wants a total payment of €20,200.
This friday we are meant to be in our solictors handing over a cheque for €17,200 (€20,200-€3,000).
I dont understand why the builders solicitor is asking for this much when we have a 92% mortgage and as first time buyers i thought we should only be paying 8% (€18,960-€3,000=€15,960).
Can anyone help?

Yours
gary
 

CCOVICH

Frequent Poster
Messages
8,831
No, you pay 10% to the builder on signing, less any booking deposit paid.

On closing, you pay the builder 90%.

You have a 92% mortgage.

The bank issues the loan cheque for 92%.

Your solicitor will take their fee, and refund you whatever is left (i.e. 2% less their fee).

FTB status is irrelevant.
 

golden mean

Frequent Poster
Messages
78
It is confusing that the word deposit is used in three different senses:

Booking deposit: the money you hand to the EA when you are sale agreed
Deposit (legal): the ten percent you shell out when you actually enter into a binding contract to buy
Deposit (bank): the money you put up yourself, as opposed to what they loan you.

The latter two have no direct relationship to each other. Is that what you were asking?
 

liteweight

Frequent Poster
Messages
1,678
Most builders require a 10% deposit/downpayment on a property inclusive of the booking deposit. It is irrelevant to them where or how you borrow the money at that stage. The builder probably isn't even aware you are a FTB. CCOVICH is correct.
 

lmd

Frequent Poster
Messages
114
When we bought our house the standard contract deposit was 10%, however our solicitor wrote to the builder's solicitor and explained we were getting a 92% mortgage so would they accept 8% and they agreed, so that might help you out if they let you do that.
 

woods

Frequent Poster
Messages
778
The developer is entitled to ask you for 15% so you are actually getting off light.
The amount of your loan is of no concern to the developer so the fact that you are borrowing a large amount does not effect anything. He/She needs this money to use to build the project. Supplies have to be paid for and men have to be paid.
 

Gary 23

Frequent Poster
Messages
56
yes thanks for telling me. the mortgage brokers didnt seem to know why they asked me for this amount and the solicitors secretary said the fee wasnt included so i didnt know what was going on. That why i thought id try askaboutmoney. altough shouldnt 10% of €237,000 be €23,700 not €20,200?

yours gary
 

Havana

Frequent Poster
Messages
240
No idea why the percentages are wrong but seems a bit odd that your broker didn't know why you had to pay 10% and not 8% to the builder!
 

nt00deep

Frequent Poster
Messages
349
Is it possible that there is 35k worth of contents / allowances included in the 237k ?
 

ClubMan

Frequent Poster
Messages
43,858
Havana said:
No idea why the percentages are wrong but seems a bit odd that your broker didn't know why you had to pay 10% and not 8% to the builder!
Where does the 10% come from? €20,200 is c. 8.5% of €237,000.
 

Witchfinder

Registered User
Messages
36
ClubMan said:
Where does the 10% come from? €20,200 is c. 8.5% of €237,000.
Don't forget the €3000 booking deposit already paid. It's still €500 out, but it's fairly close.
 

woods

Frequent Poster
Messages
778
The developer can decide what % deposit he wants as long as it is not over 15%. He can ask for 8.23617% if it suits him. It does not have to be 10%.
 

ClubMan

Frequent Poster
Messages
43,858
Witchfinder said:
Don't forget the €3000 booking deposit already paid. It's still €500 out, but it's fairly close.
The €20,200 already includes the €3K booking deposit according to the first post.
 

bambino

Frequent Poster
Messages
154
As previously stated (a few times) the developer can ask for any precentage up to 15%. ours asked for total deposit of 20k thats 6.25%
 
K

kitty2

Guest
woods said:
The developer can decide what % deposit he wants as long as it is not over 15%. He can ask for 8.23617% if it suits him. It does not have to be 10%.
My daughter has been asked by the developer for 20% deposit and this seems to be seriously above the norm? This is causing her a serious amount of stress since she has a 92% mortgage and doesn't know what to do about the shortfall Any ideas?
 

Hel_n

Frequent Poster
Messages
360
Are they looking for a deposit of 20% or is it a stage payment which equates to 20% of the purchase price?
 
Top