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Mortgage Advisor & Director
With the rise in popularity of cryptocurrencies, such as Bitcoin, Ethereum and Solana, crypto investors are increasingly opting to use their funds to meet living expenses. Mortgage lenders have gradually caught onto the undeniable staying power of this form of investment, leading to them beginning to accomodate mortgages for crypto investors.
At the time of writing, around 14 UK mortgage lenders accept Bitcoin or other digital currencies, however, as virtual currency becomes increasinlgy mainstream, more are likely to follow. Crypto investors are likely to experience more dilligent bank statement checks and their funds will need to be converted into Sterling, however, with advice from an experienced broker, it's possible to use cryptocurrency for a mortgage deposit.
Can you get a mortgage with cryptocurrency?
Yes, it's possible to use cryptocurrency as a mortgage deposit with certain mortgage lenders. Those willing to consider digital funds tend to do so on a case by case basis, and will still require that your crypto balance is converted to GBP (or fiat) to mitigate any money laundering risks.
When buying a house with cryptocurrency it's likely that lenders will require proof that your funds have been accumulated by a legal income-generating source and that relevant taxes have been paid, as mortgages are highly regulated by the Financial Conduct Authority. Although cryptocurrency can be used as a deposit, your lender will require you to convert the funds into sterling at the completion of your mortgage due to money laundering risks.
Unfortunately, you will not be able to declare cryptocurrency as a source of income in support of the mortgage repayments, so expect to show evidence of alternative earnings and expenditure too. At the current time mortgage lenders in the UK only accept crytpocurrency as a mortgage deposit.
How to get a mortgage with a crypto deposit
Getting a mortgage is a fairly standard process no matter how you earn your money. Lenders are looking to satisfy themselves that you can afford the mortgage repayments, that you are a financially trustworthy/creditworthy borrower, and that you have an acceptable deposit from a provable source. This is the same as any mortgage application, but the way in which you satisfy these requirements vary by lender, and based on your individual financial circumstances.
When it comes to using cryptocurrency, lenders will likely have the following requirements:
- You'll likely need to declare any funds in advance of using them as a deposit, and provide full documentation supporting their source. This includes information on whether it's held on an exchange or in a digital wallet, as well as sale and purchase records and evidence of how long you've held the funds
- Cryptofunds can only be used towards your mortgage deposit if you can provide evidence that funds have been declared to HMRC and all relevant taxes have been paid
- All forms of cryptocurrency must be converted before use, they cannot be accepted by banks for this purpose in their original form
- It's important to ensure that your solicitor is experienced with and comfortable handling crypto-derived deposits, as lenders will work closely with them to verify your funds. Brokers specialising in cryptocurrency mortgage deposits may be able to recommend a suitable firm
As crypto mortgages are still niche, you'll have a better chance of securing one if you have a good credit rating and have a full-time income. If you have bad credit or are self-employed, it's likely to be more difficult to secure a mortgage with this type of deposit. In either scenario, it's highly recommended that you seek advice from a mortgage broker.
Using a broker with crypto mortgage experience
Experienced brokers can advise you on which lenders accept digital currency and guide you through the substantial documentation process. It's also worth noting that most lenders currently accepting of crypto deposits are classified as specialist lenders. This often means that they will only deal with mortgage brokers, not directly with members of the public. Lastly, during periods of heightened cryptocurrency volatility, banks are likely to scrutinise bank accounts more stringently, so it's worth working with someone who understands the sector to get this right.
Using Bitcoin as a deposit can be a risky business. If you're considering this option to get on the property ladder, make sure you seek professional advice before making an application to your chosen lender.
Get the right mortgage advice
Which lenders will accept cryptocurrency as a deposit?
There are currently a couple of mainstream lenders and a few specialist mortgage lenders who will consider cryptocurrency for a mortgage deposit, however, each has their own criteria surrounding acceptance of this type of funds. Here are some examples:
- Halifax - Providing funds pass anti-money laundering (AML) checks and are transferred to a bank account
- Barclays - Will consider crypto asset based funds and those derived from Blockchain/DLT firms, Utility tokens and asset tokens on a case by case basis
- Pepper Money - Will accept any form of cryptocurrency providing it is withdrawn
- Bluestone Mortgages - Will consider providing AML checks are satisfied
It's likely that more lenders will begin to consider cryptocurrencies in time, as the industry gains wider regulation.
Apply for a cryptocurrency mortgage now
If you want to use Bitcoin or another cryptocurrency as a mortgage deposit, you'll need to work with an experienced mortgage advisor and get sound financial advice.
This area of the market is specialist and, in most cases, using mortgage brokers who have experience in this sector is likely to improve your chances of being successful.
Get started with Teito and with our help you could get a mortgage in principle in less than 5 minutes. As a truly independent mortgage broker, we compare thousands of deals, including all lenders that accept digital currency as a mortgage deposit.
FAQs
Although the virtual currencies themselves are not subject to regulation, mortgage companies must continue to follow the rules of FCA regulation which govern all mortgage lending. Mortgage providers that accept crypto need to do so responsibly by asking for detailed evidence from applicants about their income and expenditure.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.