A gifted deposit is money given towards a home purchase with no expectation that it will be repaid and, normally, no ownership share in the property. Many UK lenders accept gifts, but each has its own rules about who can give the money and what evidence is needed.
Who can gift a mortgage deposit?
Close family members are accepted most widely. Some lenders also consider gifts from wider family or other people, but their criteria can be narrower. Tell your adviser who the donor is before choosing a lender.
What evidence will the lender and solicitor need?
- A signed letter confirming the amount is an unconditional gift and not repayable
- Identification and proof of address for the donor
- Bank statements showing where the money came from
- Confirmation that the donor will not own part of the property or live there, where required
Gift or family loan: why the difference matters
If the money must be repaid, it is a loan rather than a gift. Repayments can reduce affordability and some lenders will not accept a loan as the deposit. Be open about the arrangement from the start; the lender and solicitor must understand the true source and terms.
Worked example
On a £300,000 purchase, a buyer with £15,000 has a 5% deposit and needs a 95% mortgage. A further £15,000 family gift creates a 10% deposit and a 90% mortgage. That may widen the product choice, but rates and acceptance still depend on the lender and full application.
For the wider buying journey, see first-time buyer mortgage advice, deposit requirements and LTV bands.
Expert tip: Keep the gifted money trail clear. Moving it through several accounts can create avoidable questions during source-of-funds checks.
This guide is general information, not personal advice. Figures are correct at the time of updating and rules can change. Your home may be repossessed if you do not keep up repayments on your mortgage.
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