Mortgage as 2nd Time Buyer

Cameron326

Hi all. Question regarding 2nd time buyer mortgage, re, the 20% deposit rule. Is it the case that the deposit has to be cash - ie. it can't come out of the value of the home you will be selling/moving out of? So, if you wish to purchase a property thats costs say, 600k EUR, you would need to have 120k EUR cash saved up for the deposit?

Paul_Mc1988

The money left over from the sale of your first house can be used. If the house is worth 600k the bank will only give you a 480k mortgage. You need to have 120k left over after you sell your first house and pay off the outstanding mortgage

Cameron326

https://www.boards.ie/discussion/comment/117815511#Comment_117815511

Ok many thanks for clearing that up, I'd heard elsewhere that it couldn't which struck me as strange.

cubatahavana

https://www.boards.ie/discussion/comment/117815648#Comment_117815648

We used profits from our sale to pay the 20%. For the 10% deposit after contracts, we needed to pay that from our account, so we needed the cash