You may be able to use money given by a family member towards some or all of your mortgage deposit. The lender needs to accept the donor and the arrangement, and the source of the money must be explained. A genuine gift has no expectation of repayment. If someone wants the money back or a stake in the home, tell your adviser and conveyancer before applying.
Written by Count Ready · Updated 7 September 2026 · Guidance for UK homebuyers and people helping with a deposit.
Is the deposit a gift, a loan or another arrangement?
Agree what the money means before choosing a mortgage. The label on a letter must match what everyone has actually agreed.
| Arrangement | What to explain |
|---|---|
| Outright gift | The donor gives the money without expecting repayment or an ownership interest in return. The lender checks its gifted-deposit conditions. |
| Family loan | Money must be repaid, even if interest-free or only when the home is sold. Disclose the terms, any repayments and any proposed security. |
| Ownership or family support arrangement | A relative wants a share, plans to live in the property, joins the borrowing or offers savings or property as security. These need their own assessment. |
Some lenders consider specific family-loan or secured arrangements under separate conditions. That does not make every repayable contribution acceptable, and you should not sign an unconditional gift declaration if it is untrue. Your adviser checks the lending options; your solicitor explains the legal consequences.
A gifted deposit is a source of purchase funds, rather than a guarantee of a special mortgage product. It can reduce the loan needed for the same home, but you still need to pass the lender’s income, expenditure, credit and property checks.
Who can give you a mortgage deposit?
Parents and grandparents are familiar examples, but there is no single UK-wide list of acceptable donors. Lenders differ on other relatives, friends, partners, overseas donors and money originating from a business or trust.
Give your adviser the relationship, amount and country where the donor and funds are based. Mention any conditions, anyone else contributing and whether the donor will live in the home. Check acceptance before committing to a purchase or transferring money solely for the application.
If a parent raises the gift through their own borrowing, disclose that source too. The lender may need additional evidence. The parent remains responsible for their loan; borrowing secured on their home can put it at risk. They should consider their own budget and take advice separately.
What evidence should you and the donor prepare?
The lender and conveyancer have different responsibilities and may ask for different documents. A letter confirms the arrangement; it does not, on its own, prove where the money came from.
- The gift details: the donor’s and recipient’s names, their relationship, the amount, the property if known, and any terms or planned occupancy.
- Identity evidence: identification and address documents for the donor, in the format requested.
- The origin of the money: relevant statements and supporting records showing how it was accumulated or received.
- The transfer trail: evidence linking the source account to the account used for the purchase, including any currency conversion or intermediate transfer.
- Your own application documents: the lender’s requested evidence of income, spending and any deposit savings you are adding.
Examples of source-of-funds evidence
For accumulated savings, statements may need to show the build-up of the money. A property sale may need a completion statement and evidence of the proceeds arriving. An inheritance may need documents from the estate’s solicitor or executor together with the relevant bank entry.
The exact documents and statement periods depend on the lender, conveyancer and circumstances. Moving money into a UK account, or leaving it there for a few months, does not remove the need to explain its origin. Ask for a case-specific checklist rather than assuming that three months of statements will always be enough.
What should a gifted-deposit letter say?
Use the lender’s current form if it requires one. Typically, the donor confirms who receives the money, the amount and relationship, whether repayment is expected and whether any interest in the property is retained. Signatures, dates and additional declarations depend on the form.
Our existing mortgage gift-letter example shows the type of information involved. Have the lender or conveyancer confirm the required wording before signing: a general template is not proof of acceptance or a substitute for source-of-funds checks.
When should you arrange and transfer the money?
- Discuss the arrangement early. Confirm whether it is a gift and whether the donor can afford to give it without relying on getting it back.
- Check the mortgage route. Tell your adviser about every contribution before an application is submitted. The lender decides whether the deposit and application are acceptable.
- Obtain the requested documents. Give the donor time to locate evidence and arrange any translation or certification the professionals require.
- Agree the transfer instructions. Ask your conveyancer where the money should be sent and when it must arrive. Allow time for checks and overseas transfers where relevant.
- Report changes. A different donor, amount, source or repayment condition may require another assessment, including after a mortgage offer has been issued.
Purchase milestones differ across the UK, particularly Scotland’s missives process. Your solicitor should explain when you become legally committed and when funds are needed. Verify payment details with the firm using a trusted contact method before making a transfer.
Can parents protect the money if their child buys with a partner?
First distinguish two aims: protecting the child’s contribution between the buyers, and retaining a right for the parent to recover their money. They are different arrangements.
If the gift is intended for one buyer, tell the conveyancer. They can explain how ownership and unequal contributions may be recorded under the law where the property is located. In England and Wales, this may involve tenants-in-common ownership and a declaration of trust. The appropriate documents differ across UK jurisdictions.
A document giving the donor repayment rights, a charge or a beneficial interest may conflict with an outright-gift declaration. Ask the conveyancer to check any proposed arrangement against the mortgage conditions before it is signed. Do not rely on a private side agreement that has not been disclosed.
Legal advice is particularly useful if the donor may live in the home, the buyers disagree about how the gift should be treated, or the donor wants conditions attached. Count Ready provides mortgage advice; your solicitor deals with ownership rights and legal protection.
Is a gifted mortgage deposit taxable?
A straightforward personal cash gift is not normally income on which the recipient pays UK Income Tax. Inheritance Tax can nevertheless be relevant, and overseas connections or unusual arrangements may need separate tax advice.
Under the usual rules for outright gifts between individuals, a gift may fall outside Inheritance Tax if the donor survives seven years. Exemptions can apply, and a death within seven years does not automatically mean tax is due. The result depends on the gift, other transfers, available exemptions and the donor’s circumstances. Taper relief, where relevant, reduces tax on a gift rather than simply reducing its value.
Keep records and read GOV.UK’s rules on gifts and Inheritance Tax. Ask a qualified tax adviser about the particular gift rather than treating a mortgage lender’s acceptance as tax advice.
The source of your deposit does not by itself make the property purchase tax-free. Check our first-time buyer property tax guide for SDLT in England and Northern Ireland, LBTT in Scotland and LTT in Wales.
What commonly causes extra questions or delays?
- The letter says “gift”, but there is an expectation of repayment.
- The amount, names or source differ between the application, letter and statements.
- A recent large transfer is shown without evidence of how the donor obtained it.
- Another donor, an overseas account or planned occupancy is mentioned late.
- The donor cannot provide the requested evidence or needs more time to consider the commitment.
Raise these points early. If something changes, explain it rather than altering documents to make the arrangement appear simpler. A lender may need further information or a different approach; approval is not assured.
Talk to Count Ready about your gifted deposit
Tell us roughly how much you have saved, the proposed gift, who is providing it, your purchase budget and when you hope to buy. We can check relevant lender requirements and explain the mortgage application work involved. You do not need to send identity documents or bank statements with an initial enquiry.
Our initial consultation is free. Fees for further work vary by case and are agreed before chargeable work begins. A processing fee may apply separately from an offer fee and is not charged in every case. See our mortgage advice and fee explanation.
Advice is available by phone and online. Call 01245 934515. If you have owned a home before, let us know so we can discuss the relevant route. An enquiry is not a mortgage application.
Still deciding the deposit amount? Read our 5% or 10% deposit comparison. For the wider first-home process, use our first-time buyer mortgage guide.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Gifted-deposit questions
Can I combine a gift with my own savings?
Yes, subject to the lender accepting the sources and overall application. Explain how much comes from your savings and each donor. Keep enough money for buying costs and the reserve you need after moving.
Can my whole deposit be gifted?
Some lenders allow this, but it depends on the donor, source, property and product. There may be conditions about an applicant’s own contribution. A fully gifted deposit does not replace income, credit or affordability checks.
Can I use a gifted deposit from abroad?
It may be possible. Disclose where the donor lives and where the funds are held. Country restrictions, identity checks, translations and additional source evidence may apply. Moving money through a UK account does not guarantee acceptance.
Does the donor have to be on my mortgage?
An outright gift does not, by itself, make the donor a mortgage borrower or owner. If they will join the borrowing, retain an interest or live in the home, tell your adviser and conveyancer because different conditions may apply.
What if the donor wants the money back?
Tell your adviser and conveyancer before proceeding. An expected repayment means the arrangement needs to be assessed as a loan or another form of support, rather than described as an unconditional gift. Some arrangements may be acceptable under specific lender conditions.
Sources and review date
Checked on 7 September 2026 using Nationwide’s published deposit criteria, Halifax’s gifted-deposit guidance, SRA source-of-funds guidance for solicitors in England and Wales and the GOV.UK tax guidance above. Individual lender policies are examples, not rules for every mortgage. This is general information, not a personal mortgage, legal or tax recommendation.