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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