Source of deposit
TMW reserve the right to request evidence of deposit on all applications (for first time landlord and private sale applications, evidence of deposit will be required).
The following proofs are required to evidence deposit:
- One month's current bank or building society statement (dated within last three months) or passbook held in the applicant's name.
- A statement of the current value of ISA held in the applicant's name.
If the deposit funds have been in the account for less than one month, further evidence may be requested.
- Non-UK EEA (European Economic Area) country source - three months' current bank/building society bank statement/passbook
- Non-EEA country source - six months' current bank/building society bank statement/passbook
Where funds have been in the account for less than three or six months respectively, we require proof of their origination and evidence of funds transferred to applicant's UK bank account. The source of any lump sum credit may be queried or proof of the build up of funds requested.
If a property is already sold or remortgaged (including Further Advances) or is to be sold, the following is required:
- Address of the property being sold or remortgaged
- Confirmation from solicitor that the deposit is being sourced from that property
- How funds are being released.
If the property is held jointly with someone not party to the application, a gift letter (TMW template) is also required, except in the case of divorce/separation where a letter detailing the source and amount of funds is needed from the solicitor dealing with the separation.
Nationwide remortgages and further advances cannot be accepted as source of deposit towards The Mortgage Works BTL products
- Confirmation from solicitor of the amount that is inherited and when this is/was released.
- UK bank or building society statement evidencing transfer of funds.
- For each gift over £10,000, a signed Confirmation of Gifted Deposit form from the donor (must be dated within the last three months) is required.
- For each gift over £50,000, one month’s bank statements from the donor showing available funds is required in addition to the Confirmation of Gifted Deposit form.
- Gifts will be classed as monies deposited into the customer’s account within the last 12 months. Funds which have been in the client’s account for more than 12 months will be treated as savings.
- Donors must be at least one of the following: a spouse/partner living in the same residence, owner occupier/experienced landlord or have savings above the deposit amount required.
- Maximum of two gifts per application.
- Two gifts may involve more than two donors where the gift comes from a joint source, e.g. One gift from mother and father and one gift from grandfather and grandmother.
- Gifted deposits aren't accepted if the donor resides outside of the UK and/or the funds originate from outside the UK.
UK / Overseas stocks / shares
- UK most recent Share statement or Share Portfolio statement.
- If the stocks/shares aren't UK based 3 months’ stocks/shares statements (Non-UK/EEA) and 6 months (Non-EEA) stocks/shares statements dated within 3 months
- Funds are not required to be transferred/evidenced into customer’s UK bank account.
UK Business / Company
We'll request a letter from the Limited Company’s accountant confirming how the funds are being released and that the Limited Company and all shareholders will have no interest in the security property. We'll ask for an email address for the accountant so we can contact them.
Builder incentives / cashback
Builder incentives/cashback are accepted subject to the following criteria:
- Any amount greater than 5% will be deducted to determine the net purchase price. The Mortgage Works will lend against the lower of the net purchase price or value.
Where deposit funds have been paid directly to the developer or builder, we require:
- The applicant’s latest bank statement showing the funds being transferred and
- A letter from the solicitor acting for the applicant stating the amount paid and when.
A letter from the developer isn't acceptable.
- If pension funds have been released, bank statement/passbook (dated within the last three months) should be provided
- If pension funds have not been released, latest pension statement (no more than twelve months old) showing sufficient funds to cover the deposit amount required should be provided.
Repayment of loans
Deposits provided from the repayment of loans are acceptable from a third party if repaid over three months ago and will be treated as savings.
The maximum number of gifts or loan repayments, either separately or in aggregate, will be two per application.
Unacceptable source of deposit
- Any loans taken out by your client, except for:
- borrowing from another lender against an additional property owned by the applicant (subject to affordability and criteria)
- the repayment of a Limited Company Directors Loan. The Limited Company accountants must confirm the monies are available and there is no detriment to the company by removal of the funds. This deposit must also be keyed as savings.
- Loan from a UK Trust Fund, provided no monthly repayment is made and the only condition attached to the Trust Fund loan is that it is repayable on sale of the property. Any other form of loan from a Trust Fund is unacceptable.
- Non-UK Trust Funds
- Funding from overseas companies
- Gifts from overseas companies
- Gifts from Brokers
- Non UK Gifts
- Help To Buy ISA
- Funding from credit cards
- Repayment of a loan to friends or family – we’ll only accept this if it was repaid over 3 months ago (in this case, please key as savings).
- Funds from children under the age of 18, whether a sole or joint account holder, or beneficiary of a trust.