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Can you use mortgage for off-plan exchange deposits?


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I am currently looking at my first investment and considering off-plan

The unit is very nearly finished.

How is the exchange payment/deposit paid?

Do I need to have that cash spare or can it be paid from my mortgage? 

Would appreciate any help!

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  • 2 weeks later...
  • 2 weeks later...

In fact, you definitely won't get your deposit covered by the BTL mortgage, so you do need to have money available for the deposit from a different source.

In addition, the mortgage funds are not "usually" only released on completion, but definitely only released on completion. The lender sends the money to your solicitor either on the day of completion or on the last working day before completion. In turn, your solicitor will send the money to the seller on the day of completion along with any additional deposit from you that wasn't paid at the time of exchange of contracts. Once the seller's solicitor confirms the receipt of these monies, the property key will be released to you.

Just to be precise :)


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