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No Deposit Mortgages - Lender Requirements

According to the UK Finance Mortgage Handbook a conveyancer must report to the mortgage company if you will not have control over the payment of all of the purchase -including the deposit- money (for example, if it is proposed that the borrower pays money or a deposit to the seller direct) other than a deposit held by an estate agent or a reservation fee of not more than £1,000 paid to a builder or developer.

Different mortgage companies have different contact points if the conveyancer will does have control over the deposit or payment of all the purchase or mone. Here are a few examples:

Bank of Scotland	We do not require you to report a gifted deposit subject to you being satisfied that the following conditions are met: The property is being purchased to live in and will not be let. The gift is from an immediate family member(s), who confirms it is not repayable. Gifts from unrelated third parties, including friends and employers are not acceptable. The family member(s) must be related to one of the borrower(s) by any of the following: birth/blood relative (excluding cousins) including parents, brothers, sisters, grandparents half-brother, half-sister, niece, nephew aunt/uncle (related by blood) spouse or civil partner, child, adopted child, step-child step-parent, step-brother, step-sister, step-grandparent brother-in-law, sister-in-law, parent-in-law, son-in-law, daughter-in-law a co-habitee partners/ex-partners who are not cohabiting A Deed of Trust or Second Charge to protect the gifted deposit is not acceptable. You must continue to report a gifted deposit from a family member who is also the Vendor. Note we do not accept family gifted deposits in Buy to Let transactions where the Vendor is a family member. Where a gifted deposit is acceptable you must obtain and retain on your file a letter, addressed to you, signed by each individual family member(s) gifting the deposit which confirms the following information; • The name and address of the family member gifting the deposit • Their relationship to the borrowers(s) • The name and current address of the borrower(s) • The address of the property being purchased • The amount being gifted and the source of the funds • That the gift is not repayable and the family member(s) providing the gift will not acquire an interest in the property • The letter must be dated within 3 months of completion You must ensure clear bankruptcy searches are carried out against the borrower and all parties contributing to the balance of the purchase price. You must notify us if you cannot obtain clear searches. You should report any other circumstances where the balance of the purchase price is not being provided in accordance with Part 1 and in doing so must wait for our written instructions prior to proceeding. Please email Conveyancer Support: ConveyancerSupportTeam@lloydsbanking.com
Buckinghamshire Building Society	Buckinghamshire Building Society, High Street, Chalfont St Giles, Bucks, HP8 4QB e-mail mortgages@bucksbs.co.uk Tel: 01494 879517 Fax: 01494 877259
JPMorgan	Refer to office issuing Mortgage Instructions - this is subject to any overriding terms of the Mortgage Offer.
Kensington Mortgage	Kensington Mortgage Company Ltd, New Business Operations Centre, 2nd Floor, Marlow International, Parkway, Marlow, SL7 1YL. Tel: 03444 990011 Fax: 03444 990022.
Leeds Building Society	Mortgage Lending Department (as per 1.11a). Gifted deposits will only be considered where the gift is from a family member. If the balance of the purchase price is being paid in whole or in part by anyone other than the borrower, you must: • provide us with a declaration of the amount; • obtain confirmation that such amount is not repayable and that the party providing this amount will not acquire an interest in the property; and • ensure that clear bankruptcy searches are carried out against the borrower and all parties contributing to the balance of the purchase price. You only need to notify us where you are unable to obtain clear bankruptcy searches. The person who is gifting the deposit must be a UK resident, living in the UK and the funds must be held in a UK bank or building society account. For Limited Company Buy to Let, we will accept the balance of the purchase price from any director or shareholder of the borrower company. Gifted family deposits are not acceptable on Limited Company Buy to Let. Director/shareholder loans are acceptable for Limited Company Buy to Let.
Santander	Subject to provisions outlined in the mortgage offer. Refer to the Mortgage Operations office instructing you if there is no reference in the offer or instruction.
St James Place	Mortgage Administration, St James's Place Bank, Administration Centre, PO Box 1869, Livingston EH54 7XS
Yorkshire Bank	The team at Clydesdale Sunderland SR43 4JF Tel – 0800 121 4203

A conveyancer must tell each mortgage company if there is no deposit being paid to sellers lawyers or they become aware of any arrangement in which there is:

a cashback to the buyer; or
part of the price is being satisfied by a non-cash incentive to the buyer or
any indirect incentive (cash or non cash) or rental guarantee.

Any such arrangement may lead to the mortgage offer being withdrawn or amended.