Deposit
23/08/2017
Acceptable Sources of Deposit
- Builders’ and vendors’ deposits of up to 5% of purchase price permitted. Such incentives are to be deducted from the purchase price so that the loan is calculated upon the lower of the discounted purchase price or valuation
- Gifted deposits as an incentive from the vendor or other connected person, including builders’ deposits, up to a maximum of 5% of the purchase price are permitted and will be deducted from the purchase price when calculating the loan to value
- Parental gifted deposits are acceptable up to a maximum of 50% of the lower of the purchase price or valuation
- Gifted equity
Unacceptable Sources of Deposit
- Gifts from occupiers not named on the mortgage
- Deposits funded through unsecured credit
- Vendor cash deposits
- Deposits from employers
- Deposits derived from Crypto currency
Verification:
- In respect of property purchases the source of the deposit must be verified by written confirmation
- Deposit from a gift from a family member or other third party, such as a builder, written confirmation of the gift will be required from the donor