Source of deposit: Loan Repayable on Sale of Property
Our standard acceptability
Not Acceptable
Criteria definition:
Indicates if we accept a loan that is secured against the property as a second charge, no monthly repayments are made and is repayable upon the sale of the property. For example, this situation could arise where parents want to help out a child to purchase a property but do not want to outright gift the money. The parent would place a second charge against the property so that when the property was sold at a later date the loan would be repaid providing there was sufficient equity remaining after any higher ranking charges (a mortgage for example) were repaid.
Policy Notes:
These are not acceptable.
- deposits
- Policy
Last updated:
29 August 2018