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Gifted deposits: how family help with your deposit works
1 min read · Updated
The short answer
A gifted deposit is money from family towards your deposit that doesn't have to be paid back. Lenders accept them, but they'll want a signed letter saying it's a gift, and your solicitor will check where the money came from.
What lenders want to see
Lenders need to know the money is a true gift, not a loan, because a loan would be a debt they'd count against you. Most will ask for a gifted deposit letter, signed by the person giving it.
What the gift letter says
- The giver's full name and address, and how they're related to you.
- Your full name, and the address of the home you're buying.
- The exact amount.
- That it's a gift, with nothing to pay back and no share in the home.
- The date, and the giver's signature.
Your lender or solicitor may have their own form. Use theirs if they do.
What your solicitor will check
Anti money laundering rules mean your solicitor must check where the money came from. Expect to send the giver's ID and bank statements showing the money building up or arriving. Moving the money early, and keeping a paper trail, makes this easier.
A guide, not financial or legal advice. Rules and rates change, so check with your lender, broker or solicitor. Where our numbers come from.