Moving PPR -- can i fund 10% deposit from bridging loan?

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podgerodge

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When my offer was accepted I paid a €7k deposit to the Estate Agent. The contracts are due to be signed next week and I assume I will have to pay up to 10% deposit on signing.

I am mortgage approved - does this mean I can draw down the 10% from the new mortgage or does the mortgage provider expect you to pay the 10% first and get it later at the closing stage?

Thanks
 
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Re: 7k deposit paid, contracts to be signed - how do i fund 10% on signing?

Is it a 100% mortgage?

If not, you have to fund the balance (10% less €7k) yourself. It is possible (though not common) that the vendor will accept a smaller deposit than 10% -- advise your solicitor to query this now.

If yes, your mortgage provider lends it to you (or arranges for a third party to lend it to you) as a separate loan repayable when the mortgage cheque issues. If this temporary loan is coming through a third party you need to get on to this on Monday morning so that it is ready in time.
 
Re: 7k deposit paid, contracts to be signed - how do i fund 10% on signing?

My current house is on sale and I have open bridging approved to purchase the new house.

New house - 650k
New mortgage - 450k
Bridging - 200k
 
AIB said we can get a bridging loan to pay the 10% deposit for our new house when the purchasers of our existing house signed their contract. Can you do this and pay your 10% (minus 7K) from your agreed bridging loan of 200K?
 
I have open bridging so not waiting to sell my house.

Been told by solicitor I have to fund the 10% and get it back with the mortgage in the long run..
 
Is it the case that in fact you qualify for both mortgages under lending creiteria (i.e. your income and ltv is within lending creiteria to support both loans)??

As is is very rare that we see "open bridging" these days?
 
No, our income would not qualify us for the "new mortgage + open bridging" but I guess the lender is covered by the fact that the bridging will be paid back out of the proceeds of our current house - enough equity in it to clear the old mortgage and clear the bridging. But it is Open bridging - we are proceeding with purchase of new house before sale of our own - which has no offers yet.
 
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