Source of deposit: Mortgage on additional property
Our standard acceptability
Indicates if a Buy to Let lender accepts monies raised from the mortgage of an additional property as an acceptable source of deposit. For example Mr & Mrs Smith want to purchase a property to rent out. The purchase price is £200,000 and they are looking to put down a £50,000 deposit. Their deposit is being raised against another property they own. Mr & Mrs Smith approach their preferred lender who tells them that raising a deposit against an additional property they own is acceptable and therefore they are able to proceed with an application.
This is acceptable.
29 August 2018