Can my parents gift me a deposit?
Yes. Almost every UK lender accepts deposits gifted by parents, and most accept gifts from grandparents and siblings too. The money must be a genuine gift, not a loan, and the giver signs a letter confirming they have no stake in the property and expect no repayment.
What lenders require
- A gift letter: signed confirmation that the money is a gift with no repayment expected and no interest in the property. Most lenders and solicitors have a standard template.
- Proof of funds: the giver usually needs to show where the money came from (savings statements, sale of an asset) to satisfy anti-money-laundering rules.
- ID for the giver: your solicitor will verify the giver's identity.
Things people don't expect
If the 'gift' is actually a loan to be repaid, say so, lenders treat repayments as a credit commitment, and hiding it is mortgage fraud. Gifts from more distant relatives or friends are accepted by fewer lenders, so the source matters when choosing where to apply. And if the giver passes away within seven years, the gift may have inheritance tax implications, worth a conversation with a tax adviser for large sums.
Does a gifted deposit affect what I can borrow?
No, lenders treat a gifted deposit the same as savings for affordability. A bigger deposit can actually improve your rate by lowering the loan-to-value band.
"Gifted deposits are everyday business, I arrange them constantly. The thing that delays completions is the paperwork arriving late, so get the gift letter and the giver's bank statements lined up early and the rest is smooth."
Related questions
This page is general information, not personal advice. Whether a mortgage is available and suitable depends on your individual circumstances. Lender criteria and rates change regularly. Your home may be repossessed if you do not keep up repayments on your mortgage.
Quick answers
Does the gifted money need to be in my account for months first?
No. Lenders don't require 'seasoning' of gifted funds, but the giver will need to evidence the source of the money whenever it moves.
Can a gifted deposit come from abroad?
Sometimes, but fewer lenders accept overseas gifts and the anti-money-laundering checks are stricter. It's very doable with the right lender - ask first.
Can family lend rather than gift a deposit?
Some lenders accept loaned deposits but treat repayments as outgoings, reducing what you can borrow. It must always be declared.
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