trading up - cash for deposit

S

Snork Maiden

Registered User
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Hi,

I am currently selling and buying. From the sales proceeds I should have approx 160k after I pay off my current mortgage. I need a deposit of 50k for the house i am buying, but dont have the have it in ready cash. Will I be able to use some the equity in the house I am selling or some of the new mortgage?

What do other people do in this situation.....surely everyone who tradesup doesnt have the 10% deposit in cash????

Any advice?
Snorkie
 
Once your contracts are in place for seing yourown house your bank should extending bridging at mortgage rates for you to cover the deposit.
 
Got bridging finance of 39K over a period of 3 weeks I think costed me roughly 300 euro , rate worked out at around 4%, this was from NIB.
 
Thanks Guys,

My mortgage is with BOI........so i will approach them and ask about bridging loan.

Snorkie
 
Credit union for me as well (although suspect this was the priciest option :rolleyes: ) but I believe if mortgage is being arranged through Permanent TSB it takes approx a month to arrange bridging so in our case needed it sooner than this hence the credit union.

Edit/

Just saw last post mentioned mortgage is with BOI, purchasers of our house arranged deposit loan through BOI and was done for them within a few days.
 
The problem with bridging finance is that you are obligied to stay with the lender you are with on your current house and they may not offer the best rate. Other options are for your solicitor to negotiate a lower deposit with the vendor's solicitor - 10% is the tradition deposit amount but it isn't mandatory - or to arrange a top up on your current mortgage to release equity.

Sarah

www.rea.ie
 
Chance your arm!

I didn't have the cash and didn't want to go the bridging route and my solicitor persuaded vendors to progress without 10% deposit.
 
Or negotiate a lower % if you have some cash. I basically asked if they would accept 5% as I didn't want to go to the hassle/cost of arranging bridging, and it was no problem.
 
bambino said:
I have NIB bridging at 4.24%...how'd you get 4%?
Click to expand...

Most likely his was at a lower rate as he is referring to a previous rate versus your current rate. Rates are rising.
 
The problem with bridging finance is that you are obligied to stay with the lender you are with on your current house and they may not offer the best rate.
Click to expand...

I got bridging loan from lender of new house, didn't even ask lender for mortgage on current house
 
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