Published on September 30, 2026
Using a gifted deposit can be a great way to help you buy a home, especially if you are a first-time buyer getting support from parents, grandparents or another family member.
A gifted deposit is usually money given towards your property purchase with no expectation of repayment. This can help increase your deposit, reduce the amount you need to borrow, and potentially improve the range of mortgage options available.
However, lenders and solicitors will need to check the source of the funds and confirm that it is a genuine gift rather than a loan. This means you may need a gifted deposit letter, proof of funds, donor details, and sometimes bank statements or ID from the person giving the gift.
In this article, we’ll explain what mortgage lenders may ask for when using a gifted deposit, why the paperwork matters, and how to avoid delays during your mortgage application.
A gifted deposit is money given to you to help with the deposit for a property purchase. It is most commonly gifted by a close family member, such as a parent or grandparent, but who can gift the money will depend on the lender’s criteria.
The key point is that the money should be a genuine gift. This means the person giving the money does not expect it to be repaid or to own any part of the property.
Mortgage lenders need to understand where your deposit is coming from. If part or all of your deposit is gifted, they will usually ask for evidence to confirm:
| Deposit type | What it means |
| Personal savings | Money you have saved yourself |
| Gifted deposit | Money given to you with no repayment expected |
| Loaned deposit | Money that must be paid back |
| Equity deposit | Deposit coming from the sale of another property |
A gifted deposit can be very helpful, but the paperwork needs to be clear. If the lender considers the money a loan, it could affect affordability or the lender’s willingness to accept it.
Many gifted deposits come from close family members, such as parents or grandparents. This is often the most straightforward type of gifted deposit, but lender rules can vary depending on who is giving the money and their relationship to the buyer.
Some lenders may accept gifted deposits from a wider range of people, while others may be more cautious if the gift comes from someone outside the immediate family.
| Gift source | How lenders may view it |
| Parent or guardian | Often commonly accepted |
| Grandparent | Usually straightforward with evidence |
| Sibling | May be accepted, depending on the lender |
| Wider family member | Criteria can vary |
| Friend | Some lenders may be more cautious |
| Partner not on the mortgage | May need extra checks |
| Overseas donor | May require more evidence |
The lender will usually want to confirm that the gift is genuine, that the donor does not expect repayment, and that they will not have any ownership rights over the property.
If the person giving the gift will also be living in the property, this can sometimes create extra questions for the lender. In that situation, it is worth checking the criteria before applying.
At Search Mortgage Solutions, we can help you understand which lenders may be suitable, depending on who is gifting the deposit and what evidence is likely to be required.
A gifted deposit letter is a document that confirms the money being used towards your deposit is a genuine gift. Most lenders will ask for this before they agree to use the gifted money as part of your mortgage application.
The letter is usually signed by the person giving the gift and confirms that they do not expect the money to be repaid. It also confirms that they will not own part of the property or have any legal rights over it.
| Detail | Why it matters |
| Buyer’s name | Confirms who is receiving the gift |
| Donor’s name and address | Confirms who is giving the money |
| Relationship to buyer | Helps the lender understand the connection |
| Gift amount | Confirms how much is being gifted |
| Property address | Links the gift to the purchase |
| No repayment required | Shows the money is not a loan |
| No ownership interest | Confirms the donor will not own part of the property |
| Donor signature | Confirms agreement from the person gifting the money |
Some lenders have their own gifted deposit form, while others may accept a letter containing the correct information. Your solicitor may also ask for additional details as part of their checks.
Before submitting your mortgage application, it is worth ensuring the gifted deposit letter meets the lender’s requirements. A missing signature, unclear wording, or incorrect gift amount can cause delays.
In addition to a gift deposit letter, lenders and solicitors may ask to see evidence of the source of the gifted funds. This is often referred to as the source of funds and is used to confirm that the deposited money is legitimate and can be clearly traced.
The exact documents needed can vary, but the person gifting the deposit may be asked to provide proof of how they built up or received the money.
| Source of gifted money | Evidence that may be requested |
| Savings | Recent bank or savings account statements |
| Inheritance | Solicitor letter, estate documents or bank statement |
| Property sale | Completion statement or solicitor confirmation |
| Investment sale | Investment statement showing withdrawal |
| Bonus or income | Payslip, bank statement or employer confirmation |
| Pension withdrawal | Pension statement or bank statement |
The donor may also be asked for ID and proof of address, such as a passport, driving licence, utility bill or bank statement. This is usually part of the solicitor’s checks.
It is important that the money can be followed clearly. If funds have moved between several accounts, or arrived as a large unexplained transfer, extra evidence may be needed.
A gifted deposit and a loaned deposit are not the same thing. This is an important distinction because lenders will want to know whether the money must be repaid.
A gifted deposit is money given to you with no expectation of repayment. A loaned deposit is money that you are expected to pay back, either monthly or at some point in the future. If the money is actually a loan, the lender may need to include the repayment as part of your affordability assessment.
| Gifted deposit | Loaned deposit |
| No repayment expected | Repayment is expected |
| Usually confirmed by a gifted deposit letter | May need to be declared as borrowing |
| The donor has no ownership rights | The lender may ask more questions |
| Often simpler for lenders to assess | Could affect affordability |
| Must be a genuine gift | May reduce lender options |
If a family member gives you money but expects it back later, this should be made clear from the start. Trying to present a loan as a gift can cause problems with the lender or solicitor and may delay the application.
The safest approach is to be open about how the deposit is being provided. If the money is a genuine gift, the paperwork should clearly confirm this. If it is a loan, it is worth getting advice before applying so you understand how lenders may treat it.
Gifted deposits are very common, but small paperwork issues can sometimes cause delays. The key is to be clear from the start and make sure the lender and solicitor have the information they need.
If the gifted money has come from savings, inheritance, a property sale or investments, make sure there is evidence to show this. Lenders and solicitors may need to understand where the money originally came from, not just where it is sitting now.
It is also important that the gifted deposit letter is accurate. The gift amount, donor details, buyer details and property address should all match the application where possible.
At Search Mortgage Solutions, we can help you understand which documents may be needed before the application is submitted, helping you avoid unnecessary delays later in the process.
Using a gifted deposit can make buying a home more achievable, but it can also add extra paperwork to the mortgage process. Lenders need to be comfortable with where the money has come from, who is gifting it, and whether it is a genuine gift.
At Search Mortgage Solutions, we offer 100% fee-free mortgage advice and can help you understand what documents may be needed before you apply.
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Different lenders can have different rules around gifted deposits. Some may be more flexible than others depending on who is gifting the money, where the funds came from, and whether the donor will live in the property.
Search Mortgage Solutions is based in Manchester and helps clients locally and across the UK. We can guide you through the process from initial enquiry through to completion, helping you feel clearer and more prepared before your mortgage application is submitted.
A gifted deposit can be a helpful way to buy a home, especially for first-time buyers who are getting support from family. However, lenders and solicitors will need clear evidence that the money is a genuine gift and not a loan.
The main things to prepare are usually a gifted deposit letter, proof of where the money came from, donor details, and a clear paper trail showing the movement of funds. The exact requirements can vary depending on the lender, the donor, and the source of the money.
Getting organised early can help avoid delays, especially if the gift is coming from savings, inheritance, a property sale, investments, or an overseas account.
At Search Mortgage Solutions, we offer 100% fee-free mortgage advice and have access to mortgage options from a wide variety of lenders. We can help you understand which lenders may be suitable and what documents may be needed before you apply.
Using a gifted deposit to buy a home? Get in touch with Search Mortgage Solutions today to speak with a mortgage adviser.