YouTube is littered with videos by property gurus discussing with varying levels of expertise and probity how to apply for business Bounce Back loans and – in some but not all cases – implying indirectly that that they are a cheap way to raise finance to buy property.

Some are from controversial characters such as Paul Smith and Samuel Leeds who blatantly push the loans as potential funding sources, but also other ‘millionaire property gurus’ such as Glen Armstrong, who takes a more cautious approach.

But Ranjan Bhattacharya who has also published several videos about the loans, says he is highly critical of other mentors who advocate using the Bounce Back loans as an opportunity obtain investment funds.

But as we reported recently, one of the most controversial figures – Paul Smith – was investigated by a national newspaper over his suggestion that investors should use Bounce Back (BB) loans to buy property.

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This kind of advice can be given by gurus freely and legitimately because HM Treasury’s guidance is extremely vague about what these loans can be used for, saying only that they are to help businesses ‘keep operating’ or ‘stay afloat’ during the crisis.

But would this include using a BB loan to put down a deposit on a mortgage property?

Glenn Armstrong of Property Millionaire Academy, who has posted several videos discussing the loans with property sourcing guru Christoz Wild, is one of the more cautious advice givers, but nevertheless suggests the loans can be used in some circumstances to buy property.

He tells LandlordZONE that the loans “can be used for development projects if you lend it to another company, but not as a deposit for buying investment properties.

“And most investment properties would not be profitable if you had to pay [the Bounce Bank loan] interest from rent income. Most lenders will not lend if they know deposit is from a BB loan.”

Wild says government guidelines state that BB loans must be used ‘for the economic benefit of the business’ so an example given is that the company receiving the loan could lend it to another company for a higher rate of interest.

“The new company would then be able to use the funds as it wishes within the property sector, subject to any restrictions that the original company gives in the loan agreement,” he says.

Cyril Thomas, who heads up the Property Investors Bureau, has told LandlordZONE that: “We would not encourage investors or individuals to do anything in breach of the terms of their loan – I don’t want to get into the moral maze of what these loans should or shouldn’t be used for, but to keep it factual.

*This article was amended on 16th July to correct an assertion that Ranjan Bhattacharya supported using Bounce Back loans to help finance investments, and highlight his opposition to the practice.


  1. Hi Nigel. I think you have misrepresented my viewpoint. I never suggested that bounce back loans are ‘free money’ or could be used for property deposits or should be claimed by misrepresenting facts.

    In particular I called out Paul Smith for suggesting that bounce back loans do not have to be paid back and could be seen as ‘free money’.

    Here is what Paul actually said:
    Here is our critical commentary:

    In a recent Sunday Times article, the journalist quoted both myself and Vanessa Warwick as being critical of some of the poor advice offered on the subject of bounce back loans.

    For that reason, I feel you have misrepresented me by placing me on the same side of the argument as some of the other people you have mentioned.

    I have made 2 videos on bounce back loans (with Andrew Roberts, Accountant).

    Please watch the videos and let me know which parts actually correspond with me advocating anything mentioned in your headline.

    As mentioned previously, the Sunday Times correctly placed me on the right side of the argument in being critical of the way some have been advising they use bounce back loans. Your article seems to lump me in with these guys. It would have been useful to call me before mentioning me for the sake of professional journalism.

    Nigel, I will send you an email with my contact details. Please feel free to get in touch.

  2. Hi can I put deposit on house using bbl or is their a way to do do it the property I was getting was buying to renovate and is their a way so I could use this money to put down on house eg . Moving money or investing and putting back in bank I also work from home could I put it down to work premises and then put a deposit down with no come backs ?


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