Buy-to-let policy
Gifted deposits
Gifted deposits (for example, money gifted by family) are acceptable. Vendor gifted deposits are only acceptable for a new build.
Capital from other properties
Deposits from capital raising against other properties are acceptable.
New builds
For new builds, we allow cash incentives up to 5% of the purchase price without affecting the loan amount. If greater than 5%, the balance of the incentive above 5% must be deducted from the purchase price when calculating the maximum loan amount.
Loans
Deposits from loans are only acceptable subject to underwriter assessment. There must be no charge placed on the property we are lending on. Where the deposit is from a loan, this should be confirmed as the source of deposit in the application, and the associated expenditure and repayment terms declared. This includes loans from financial institutions or individuals, such as family members. Just so you know, we won’t usually consider scenarios where the deposit is entirely from a loan.
Gifted equity
Gifted equity is acceptable when buying from a family member. See our discounted purchase criteria.
ROSCA
Deposits sourced from Rotating Savings and Credit Associations (ROSCA), for example an open cooperative funding circle scheme, are not acceptable.
Evidence
We do not usually require proof of deposit to be provided. The legal rep will confirm the deposit as part of their due diligence. If the deposit is gifted, we require a gifted deposit form.