A Deed of Postponement

What is a Deed of Postponement?

If you bought your home through RTB or RTA, SNG keeps an interest in the discount you received for the first five years after you buy your home.

If you want to remortgage, borrow more money or pay for certain home improvements during this time, your lender may ask for a Deed of Postponement.

A Deed of Postponement is a legal agreement that allows your lender's additional borrowing to take priority over SNG's claim on your RTB or RTA discount.


Can I apply for one?

We'll consider each request individually. When we assess a request, we'll look at things such as:

  • how much extra money you want to borrow
  • what you want to use the money for
  • whether there is enough equity in your home to cover your mortgage, any additional borrowing and the RTB or RTA discount
  • how much of the five-year discount period is left
  • any potential risk to SNG

This list is not exhaustive.


What can't the extra borrowing be used for?

We would not normally agree to a Deed of Postponement if the borrowing is for:

  • paying off credit cards or other debts
  • paying rent arrears
  • holidays
  • buying a vehicle
  • buying another property or land
  • landscaping or gardening
  • replacing carpets or flooring
  • replacing kitchens or bathrooms
  • building or replacing a garage, shed or other outbuilding
  • anything not allowed under the terms of your lease or transfer


What should I do next?

Before making any arrangements, contact us, or ask your lender or solicitor to contact us. We'll explain what information we need and review your request.

To help us assess your request, you or your lender will need to provide:

  • a copy of your mortgage offer
  • a redemption statement for your existing mortgage, if you're remortgaging
  • details of what the additional borrowing will be used for
  • supporting evidence for the additional borrowing

If you're borrowing money for home improvements, we'll also need:

  • details of the work you plan to carry out
  • at least three quotes or estimates from reputable contractors, on company headed paper

We'll also need:

  • a market valuation of your home completed by a RICS-qualified surveyor within the last three months

A fee applies for Deed of Postponement requests. We'll let you know the amount and how to make payment. The fee must be paid before the Deed of Postponement can be completed.

Please note that a Deed of Postponement is not automatically approved. Every request is considered on a case-by-case basis.


Applying for home improvement consent?

If you're applying for permission to carry out home improvements, please let us know if the work will be funded through additional borrowing.

If a Deed of Postponement is needed, we'll work with you and your lender to complete the process.


Contact us

For help or advice, contact: