What is a deposit and when is it paid?
The deposit will be held in an account by either a solicitor or surveyor, and upon completion of the purchase, it will be deducted from the full cost of the property to reduce what needs to be paid
The deposit will be held in an account by either a solicitor or surveyor, and upon completion of the purchase, it will be deducted from the full cost of the property to reduce what needs to be paid
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A deposit is a sum of money paid upfront by the buyer when purchasing a house. It serves as an earnest payment and indicates that the buyer is committed to going ahead with the purchase. The size of a deposit will vary depending on factors such as property price and any mortgage arranged by the buyer. A typical minimum deposit in the UK ranges from 5-10% of the total purchase price, however if you are using a mortgage lender they may require at least 10%. Once your offer has been accepted, it's normal for your solicitor to ask for your deposit to be put into their client account so that it can be held safely until exchange of contracts takes place. The amount of your deposit should then be deducted from what you owe the seller when you complete. It is important to remember that, in most cases, your deposit will be non-refundable should you choose not to proceed with the purchase. Therefore, it is essential to ensure you understand all aspects of the transaction before committing a sum of money as a deposit.
