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.

Criteria categories:
  • deposits
  • Policy

Last updated:

29 August 2018