Updated October 2026 · Fraser Bond
Property finance · Fraser Bond
Loan to Cover Deposit on New House
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Tell us how much you need, what it's for, the property or security involved, your timescale and how you plan to repay. Our team will come back to you about the options.
Costs at a glance
Most bridging interest is rolled up or retained. Add valuation and legal fees.
The guide
Why Buyers Need Deposit Loans
Securing a property in London often requires a 10–30% deposit upfront. For many buyers, especially those purchasing before selling their existing home or investing in multiple properties, raising this capital quickly can be challenging. A loan to cover the deposit on a new house provides short-term funding that bridges the gap until long-term finance or sale proceeds are available.
This approach ensures buyers don’t miss out on opportunities due to liquidity issues.
When to Use a Deposit Loan
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Buying Before Selling – Securing your next home before releasing equity from your current property.
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Auction Purchases – Paying the 10% deposit immediately at the fall of the hammer.
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New-Build Deadlines – Meeting developer deposit schedules for off-plan or under-construction properties.
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Portfolio Expansion – Landlords acquiring multiple properties without waiting on refinance.
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Cash Flow Gaps – Covering deposit requirements while mortgage approval is still processing.
Types of Loans to Cover a House Deposit
Bridging Loans
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Short-term secured finance arranged within days.
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Ideal for deposits in auctions, chain breaks, or urgent completions.
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Repaid once long-term mortgage or sale funds are available.
Equity Release / Let-to-Buy
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Release equity from your current home by converting to a buy-to-let mortgage.
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Funds can then be used for the deposit on your next purchase.
Development or Refurbishment Finance
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For investors purchasing properties that need works before refinancing.
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Deposit loans structured as part of a wider funding package.
Benefits and Risks
Benefits
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Speed – Enables buyers to secure property without waiting for equity or mortgage funds.
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Flexibility – Suitable for residential and investment purchases.
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Confidence – Strengthens your position with sellers and developers.
Risks
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Higher Costs – Short-term finance carries higher monthly interest (typically 0.5%–1.2%).
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Secured Lending – Usually requires collateral, such as your existing property.
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Exit Strategy Needed – Repayment relies on mortgage approval or sale proceeds.
Fraser Bond – Deposit Loan Specialists for London Buyers
At Fraser Bond, we support buyers and investors who need deposit loans to complete property purchases:
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Independent Guidance – Identifying the most suitable loan structure.
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Trusted Lender Access – Connecting clients with short-term finance providers.
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Application Support – Packaging cases for rapid approval.
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Exit Strategy Planning – Ensuring repayment via sale or refinance.
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Buyer Advisory – Helping clients secure homes and investments without delay.
If you need a loan to cover a deposit on a new house, explore tailored solutions at FraserBond.com.
What to have ready
Important: your home or property may be repossessed if you do not keep up repayments on a loan secured on it. Bridging loans secured on a home you or your family live in are regulated and must be arranged by an FCA-authorised firm.
Frequently asked questions
How fast can finance complete?
Bridging can complete in days to weeks, depending on valuation and legal work.
What is an exit route?
How the loan will be repaid, usually by selling or refinancing.
Can Fraser Bond help?
Yes. Send us an enquiry and we'll talk you through the options.
Ready to talk finance?
Tell us what you need and our team will be in touch.
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