@PBS / SECURE LOGINSource of deposits must be confirmed, evidenced and must not be via additional borrowings. Where a deposit is being gifted, the gift must originate from a family member. Confirmation must be obtained that the deposit is a non-repayable gift and that no interest in the property will exist.
The Deposit must be funded from the borrower’s own resources (savings, equity, investment proceeds, inheritance or similar) and not from further borrowing. It can also be gifted (i.e. not subject to repayment at any time) by direct family members only (parent, grandparent, sibling).
Concessionary purchase is acceptable, where the vendor of the property is a family member of the applicant(s) and is willing to sell to them, the property at a reduced (concessionary) price. There is no limit to the sum gifted in this manner, however, the Society’s solicitors must ensure that any gifted equity is protected in the form of Deed of Gift(s) / bankruptcy indemnity insurance. Appropriate conditions must be added to the binding offer prior to release. Applicants must contribute a minimum of 5% of the concessionary purchase price, as a deposit (this can be gifted).
Source of deposits must be confirmed, evidenced and must not be via additional borrowings. Where a deposit is being gifted, the gift must originate from a family member. Confirmation must be obtained that the deposit is a non-repayable gift and that no interest in the property will exist.
Deposit funds must be verified in terms of origin. Savings should be held in the UK and not offshore. Where offshore savings are being used to fund a deposit, the case must be referred to a mandate holder for consideration.
Lump sum credits in excess of £1000 (where not derived from salary credits), require further investigation by the case handler. An explanation from applicant about the origins of the funds, whilst exercising caution in the event of money laundering suspicions, should be obtained.
A minimum of 3 months statements, evidencing deposit funds are required.
ACCEPTABLE DEPOSITS:
- Gift from Family
- Inheritance (if within last 3 months, confirmation from the Executors, a copy of the Will or a Solicitors letter should be obtained to verify)
- Stocks and shares
- Funds raised from another property – subject to the additional borrowing being included in the affordability assessment
- Own savings
Where funds have been transferred into the applicants account, the Society reserves the right to request evidence of the transaction from the Donor, to establish source of funds.
UNACCEPTABLE DEPOSITS
- Cash (where the applicant claims to have ‘saved at home’)
- Sale of assets e.g. sale of vehicle / jewellery
- Unsecured borrowings