Cryptocurrency and Mortgages: What Buyers Need to Know
Cryptocurrency has become one of the most talked-about financial topics in recent years. From Bitcoin to a wide range of digital assets, many people hold crypto they might hope to use towards a property deposit. However, turning crypto into a mortgage-ready deposit isn’t straightforward. UK lenders are still navigating this new and rapidly evolving market.
Why Lenders Are Cautious
The biggest challenge is regulation. Cryptocurrency remains largely unregulated, and its value can rise and fall dramatically in a short period. Lenders must understand where a deposit comes from and whether it meets anti-money laundering requirements. With crypto, that transparency is far harder to demonstrate, especially when funds move through multiple wallets or exchanges.
Because of this, many lenders treat crypto-derived deposits as high-risk funds. Some even handle them similarly to gambling winnings, simply because there’s no formal regulatory guidance. Several high street banks have confirmed they will not accept deposits originating from cryptocurrency—even after conversion into sterling.
Converting Crypto Isn’t Enough
Even after converting crypto into pounds, lenders will expect a full and transparent transaction history. They want to see where the crypto came from, when it was bought and sold, which exchange was used, when the proceeds landed in your bank account, and confirmation that any tax due—such as capital gains tax—has been paid. Without this “audit trail,” most lenders will refuse the deposit.
Even if a lender is comfortable, the solicitor handling the transaction may not be. Some conveyancers decline crypto-origin funds altogether due to the complexity and risk involved, which can cause unexpected delays or force buyers to switch firms mid-purchase.
Will Things Change?
Possibly—but not yet. With the rapid growth of the crypto market and billions invested worldwide, some argue that the current cautious stance is outdated. As digital currencies become more mainstream, lenders may eventually adapt. For now, the majority remain cautious, and those willing to consider crypto deposits usually require full conversion, documentation, and explanation.
The Importance of Whole-of-Market Advice
If you hope to use crypto towards a property purchase, the most important step is speaking with a whole-of-market mortgage adviser. Many advisers operate from a limited panel of lenders, meaning they may not have access to niche or specialist providers familiar with crypto-derived funds.
A whole-of-market broker can explore every available avenue, guide you on the documentation you’ll need, and advise which lenders and solicitors are more likely to accept your circumstances. Specialist brokers often have close relationships with lenders, sometimes even in-house underwriters, helping applications progress more smoothly and quickly.
And remember—you’re never tied to a specific adviser. If someone pressures you into using a particular broker or insists there’s no alternative, you are fully entitled to choose someone who genuinely acts in your best interests.
In Summary
Cryptocurrency may be modern, exciting, and potentially rewarding—but in the mortgage world, it remains a grey area. Using crypto-derived funds as a deposit requires careful planning, full documentation, and support from a specialist who understands the landscape.
At Impact Specialist Finance, we guide buyers through the complexities of using crypto towards a property purchase. Speak to one of our whole-of-market advisers today to explore your options and make your property journey smoother.