Clients of mine who recently got approval for mortgages for self builds are reporting that a condition of the approval is that a sum of 10% of the mortgage advance is kept on deposit with the bank for two years .

I wonder if the Central bank knows?

Do they lend you that 10% as part of the mortgage though?

EBS ?

No BoS

The EBS philosophy of putting onerous conditions on lending to put people off seems to be spreading then. Of course BoS is part of HBOS so that probably isn't surprising.

No they don't lend the 10%.

The canny and the desperate usually inflate cost by 10% to cover the 10% residual deposit clause.

In practice people will front end load their estimates to harvest the 10% from the loan

So they do lend the 10% then... Sweet cashback at close...