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visit: MBS Lending  |  The Melton Building Society

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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
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