Is it possible to buy or remortgage a property held in a Bare Trust?

by Aaron Strutt

Sep 01 2025

Yes — it is possible to buy or remortgage a property held in a bare trust in the UK, but not all of the lenders are willing to issue mortgages with this ownership structure. Some private banks and challenger providers are more willing to assist depending on the loan size and the trustee/beneficiaries.

What is a Bare Trust?

A bare trust is a simple trust arrangement where the trustee holds assets (including property) on behalf of a beneficiary who has the absolute right to both the capital and the income from the trust. Bare trusts are often used to pass assets to young people - the trustees look after them until the beneficiary is old enough.

For property: the legal title may be held by the trustee(s), but the beneficial interest rests with the named beneficiary, and they can claim the asset once they reach (in England & Wales) age 18 (or 16 in Scotland).

Aaron Strutt, product director at Trinity Financial, says: "There are certainly lenders willing to issue bare trust mortgages, but just as with any other application, any lender willing to issue a bare trust mortgage will want to get a full understanding of the properties, trust, the trustee/beneficiaries, before they will agree to lend. Most lenders will say no, but there are private banks and specialist lenders who are keen to lend, provided the deal makes sense to them. Some lenders also say these applications are subject to underwriters' review and can be accepted at their discretion." 

Why is buying or remortgaging more complex with a Bare Trust?

When remortgaging a property held in a bare trust, you’ll face extra considerations: 

Some lenders will not lend on anything that has a trust set up or association, often because they lack the legal expertise to deal with trusts, which are complex, or because they do not have the appetite to lend.  When considering lending, they expect the Trust to be extinguished at or prior to completion, which is unlikely to happen in most of these applications.

• Lender acceptance: Some lenders may be reluctant to lend or remortgage where the legal title is held in trust rather than directly by the borrower. The fact the property is in trust could raise questions about who is legally liable for the mortgage and whether the trustee has full power to grant the charge. For instance, one article notes that “trust property” mortgage considerations require ensuring the trust complies with the loan’s terms. 
• Trust deed / terms: If the trust deed limits the trustees’ powers (for example for charging or remortgaging the property) then this must be checked by the lenders. The trustee’s powers must allow them to enter into a mortgage or remortgage.
• Beneficiary rights: The beneficiary is absolutely entitled to the trust property (in a bare trust) so their position needs to be clear. If the beneficiary is a minor, then this complicates things further because they cannot legally contract in the same way an adult can.
• Liability/documentation: The trustee will typically sign the mortgage contract, but the lender will probably want to see evidence of the trust structure, the beneficiary’s entitlement, and whether any restrictions are in place. 
• Land Registry/title matters: When land is held in trust, lenders will check how the title is registered and whether there are restrictions (form A/B restrictions) on charging. The deed of trust may impose restrictions, or the Land Registry may have recorded a restriction.

Jessica Shore, Associate at SAS Daniels, explains: "It is possible to purchase a property in a bare trust, subject to any restrictions there may be on the title relating to the beneficial interests which sit behind the legal title. Trustees have the power to sell or purchase property on behalf of the beneficiaries of the trust. The purchase price will normally have to be paid to at least two trustees or a trust corporation. To avoid any potential claims, caution should always be exercised by anyone buying from a trust that they are satisfied they know who the ultimate beneficiaries of the trust are and that no fraud or misconduct is taking place with the sale."

Get expert mortgage advice from Trinity Financial

At Trinity Financial, our team of experienced London mortgage brokers specialises in helping borrowers secure the right deal. We work with all major lenders and can guide you through the full application process.

If you send us a copy of the trust and a property portfolio list/spreadsheet, if available, we can initiate the research process.

Call Trinity Financial on 020 7016 0790 to secure a Bare Trust mortgage or book a consultation

The information contained within was correct at the time of publication but is subject to change.

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