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Gifted deposits
A gifted deposit is when money is given by a family member for a deposit on a house.
How does a gifted deposit work?
If someone gives you a gift of cash for part or all of your house deposit, a mortgage lender will ask for proof that it is a gift.
This is proved by asking the person who is giving you the money, to write a ‘gifted deposit letter’. The letter shows that they don’t want you to repay the amount back. It’s sometimes referred to as a 'gifted deposit declaration’.
You’ll send this letter off to your mortgage lender with your application.
Gifted deposit letter
The person giving the gift must always send a gifted deposit declaration to a mortgage lender, including:
- Their name.
- Your name.
- The total amount given.
- A statement that it’s a gift and the person does not expect repayment.
- Confirmation that the gift giver has no stake in the property.
- Confirmation that the gift giver can afford to give you the money.
Who can give a gifted deposit?
Handy to know
The gift giver will also need to show the following personal documents to follow anti-money laundering laws:
- Proof of address.
- Bank statements.
- Photo ID.
Other documents may be accepted or required.
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