A gifted deposit is money given to you towards buying a property, most commonly by a parent or close family member. It can cover some or all of the deposit you need, provided the mortgage lender accepts the arrangement.
The money must be a genuine gift, not a loan. Your lender and solicitor will normally need confirmation that it does not have to be repaid, along with evidence showing where the funds have come from.
For home buyers who have not yet saved the full deposit they need, a family contribution could provide the additional funds needed to move ahead with a purchase.
Who Can Gift You A Property Deposit?
Parents are one of the most common sources of gifted deposits, although many mortgage lenders will also accept money from other close family members.
Depending on the lender, this could include grandparents, siblings or other relatives.
Some lenders may consider a gift from a friend, unmarried partner or employer. These arrangements can be subject to different criteria and additional checks, so it is important to establish whether the person providing the money will be accepted before you apply.
The person making the gift will normally need to confirm that the money does not need to be repaid and that they will not have a legal or financial interest in the property after completion.
If there is an agreement for you to repay the money, the lender is likely to treat it as borrowing rather than a gifted deposit. This could affect its assessment of your mortgage affordability.
What Does A Gifted Deposit Letter Need To Confirm?
Your mortgage lender and solicitor will normally ask for written confirmation that the money is genuinely being gifted to you.
A gifted deposit letter will usually identify the person providing the money and the person receiving it, state how much is being gifted and confirm that repayment is not required.
It will normally also confirm that the person providing the gift will not have an interest in the property after the purchase completes. A signature and date are generally required.
Some mortgage lenders have their own gifted deposit form, while your solicitor may provide a template. Finding out which document is required early in the process can help prevent paperwork from holding up your purchase later.
Why Will The Source Of The Money Be Checked?
Your lender and solicitor will need to establish where the gifted money has come from. These checks form part of the property purchase and help prevent fraud and money laundering.
The person providing the money may be asked for proof of identity, recent bank statements and evidence showing how the funds were accumulated.
For example, the money could have come from savings, investments or proceeds from the sale of a property.
Your solicitor will review the relevant evidence as part of the legal process. If information is missing or further evidence is required, it can take longer for the purchase to progress.
Preparing the relevant documents early can help reduce the likelihood of avoidable delays.
Can You Combine A Gift With Your Own Deposit?
Yes. The money you receive as a gift does not have to cover your entire property deposit.
You can combine it with your own savings, which can be useful if you have already saved a substantial amount but need an additional contribution to reach the deposit required by your mortgage lender.
Some buyers also use gifted money alongside savings held in a Lifetime ISA, subject to the rules that apply to using a Lifetime ISA towards a property purchase.
Your lender and solicitor will usually need to establish where each part of your deposit has come from. You should therefore be prepared to provide evidence for your own savings as well as the money being gifted.
Using A Gifted Deposit As A First Time Buyer
Gifted deposits are particularly common among first time buyers, especially where someone has been building their own savings but needs additional money to reach the required deposit.
The gifted contribution can be combined with your own savings and may increase the overall deposit available for the property.
Having a larger deposit can reduce your loan-to-value, commonly known as LTV. Depending on the mortgage lender and product, a lower LTV may give you access to a wider range of mortgages and potentially more competitive interest rates.
Receiving money from family does not change the lender’s requirement to assess whether the mortgage is affordable. Your income, expenditure and wider circumstances will still need to meet its criteria for the amount you want to borrow.
Will A Gifted Deposit Hold Up Your Purchase?
Not usually. Delays are more likely to occur when your lender or solicitor is waiting for information about the gift.
The person providing the money may need to supply identification, bank statements, evidence showing where the funds have come from, and a completed gifted deposit letter.
If further checks are required or documents are incomplete, both the mortgage and legal stages of the purchase can take longer.
Letting the person gifting the money know what they are likely to be asked for gives them more time to prepare the necessary evidence.
Can More Than One Person Contribute?
Yes. More than one person can potentially contribute towards your deposit, provided your mortgage lender accepts each gift.
For example, you could receive one contribution from your parents and another from your grandparents or another close family member.
Each person providing money will normally need to satisfy the lender’s requirements separately. This can include confirming that their contribution is a genuine gift, providing identification, and supplying evidence showing where their money has come from.
If you’ve found a property in Durham and part of your deposit is coming from family, it is worth establishing whether the lender will accept the gift before the mortgage application goes ahead.
Our mortgage advisors in Durham can check the lender’s gifted deposit criteria, including who is providing the money and the evidence likely to be required.
Date Last Edited: September 11, 2026
