Many buyers these days are struggling to save and raise a large enough deposit to purchase a property. These may be first time buyers or those selling and buying new homes. Normally mortgage lenders will not let you borrow the deposit as this would be against their rules.
But, we do have a high street lender who will allow you subject to affordability to borrow all or part of the deposit. The deposit loan is a secured loan that is secured as a second charge on the property. This obviously comes at a higher rate, this may be partly offset by allowing you to put down a larger deposit in favour of a better mortgage rate.
In todays difficult mortgage market and depressed property values this may well give you the opportunity to buy whilst it is still a buyers market. Most importantly affordability is the big issue here, we and the lender will be very particular about ensuring you can afford the new mortgage, the cost of the loan and any other commitments you may have. This scheme may well suit those with good incomes and little or no deposit.