When Do I Pay My Deposit? 

Your deposit secures your purchase at the pivotal moment of exchange. Understanding exactly when and how this happens is vital for first-time buyers as they approach this binding legal step. 

The timing 

You pay the deposit on or just before the exchange of contracts, which is when both solicitors formally swap signed contracts over the phone. While you might agree on a completion date weeks in advance, the money usually needs to be sitting as cleared funds in your solicitor’s account at least 24 hours before the planned exchange. 

Don’t wait until the morning of exchange. With stricter bank security checks, high-value transfers can sometimes be flagged for manual review. Moving your funds a day early avoids a stressful delay. 

The amount 

The standard deposit is typically 10% of the purchase price. With many 95% mortgage products available, sellers often agree to a 5% exchange deposit. 

There’s an important legal catch: even if you pay a 5% deposit at exchange, you’re still legally liable for the full 10% if you pull out later. If the deal fails due to your breach, the seller can sue you for the remaining 5% balance. 

For more on deposit sizes, see our guide on how much deposit do I need to buy a house. 

The transfer process 

Your solicitor handles the transfer securely from their client account to the seller’s side via CHAPS. This is the gold standard for property transactions, an irrevocable, same-day payment system. Unlike standard Faster Payments, CHAPS is specifically designed for high-value security. 

Key preparation and safety 

Your solicitor will send you a completion statement, a formal request for the deposit and their fees, one to two days before exchange. 

Always verify bank details over the phone using a trusted number. Never rely on bank details sent solely by email, as fraudsters still target the Friday afternoon rush by intercepting email chains. 

Until the moment of exchange, your deposit stays in your solicitor’s protected client account. It’s only at risk once the solicitors formally announce that contracts have been exchanged. 

Next steps 

At Setfords, we calculate your precise deposit amount weeks in advance, ensuring there are no last-minute scrambles for funds. We provide secure, encrypted instructions for transferring your money and coordinate the exchange to ensure your funds are protected at every second of the transaction. 

Get your free conveyancing quote today 

What you can expect with Setfords

More time, more attention: With no targets, Setfords lawyers can dedicate more time to you.

Ultimate flexibility: Our lawyers can tailor their schedules to meet your needs.

Nationwide coverage: with hundreds of consultant lawyers across the UK, we’ll connect you with the right expert.

Dedicated specialist legal partner: work directly with your chosen lawyer from start to finish.

Highly experienced: Setfords lawyers have an average of 20 years’ experience, so you can be assured you’re in safe hands.

Capacity-based allocation: our lawyers never take on more work than they can handle, so you get the focus and attention you deserve.

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