For property purchases applicants must make a minimum personal deposit determined by their individual credit score, product or scheme. The source of deposit must be accurately declared on the application.
Current LTV & Lending Limits. We may request proof of deposit.
Non Acceptable Deposits
Deposit raised through personal loans or funds that originate from sanctioned countries are not acceptable.
The following means of deposit are acceptable providing they are not repayable:
- Personal Savings.
- Genuine gifts from family (see Family Gift section below) - (However if the deposit is from equity, for example, a reduced purchase price, the application will be treated as a concessionary purchase).
- New Build Cash Incentives, Move In and Save Schemes (offered by a major national/regional builder for brand new properties). Not a loan or be repayable or protected by way of a second charge.
- Local Authority/Housing Association Discount Purchase (Right to Buy).
- Local Authority/Housing Association Tenancy Incentive Scheme (not private sales).
- Where the deposit is being obtained under the Tenants Incentive Scheme (sometimes known as the Voluntary Purchase Grant).
- The applicant is using a loan from the Ministry of Defence (MOD).
Vendor Deposits and Cashbacks (non new build properties) - vendor gifted deposits are an unacceptable source of deposit for any non new build property. This does not impact buyers who are receiving gifted deposits to purchase new build properties or concessionary purchases.
Genuine gifts from family are acceptable where the gift is non repayable and the giftor will have no interest nor reside in the property.
Where the source of the applicant’s deposit is a gift from a family member, a letter from the family member must always be obtained as evidence.
Gifts are only acceptable from the following family members:
- Parents (including step-parents and parents of a spouse)
- Siblings (including step-siblings and siblings of a spouse)
- Children (including step children and step children of spouse)
- Grandparents / Great Grandparents (Including Step Grandparents)
- Aunts/Uncles (must be a family relation)
Gifted Deposit Letter
The family member gifting the deposit must complete the gifted deposit letter which can be downloaded from our the guides and forms section.
- Gifted Deposit Letter must be addressed to the Bank.
- Amount of gift (in sterling) must cover the amount keyed in Mortgage Pro.
- Details of the family member(s) gifting the deposit including first name and surname, address and their relationship with the applicant.
- Minimum first name and surname of the applicants, their current address and details of the property being purchased.
- Confirmation the gift is non repayable (No claw back).
- Confirmation that they will have no interest nor reside in the property.
- Date (must be dated within the last 3 months).
- Letter must be signed by giftor(s).