A gifted deposit is money given to you towards the purchase of a property, usually by a parent or another close family member.
The key point is that the money is a genuine gift and is not expected to be repaid. Mortgage lenders will normally ask for evidence confirming this, along with checks to establish where the money has come from.
Gifted deposits are widely accepted and can reduce the amount you need to save yourself. If you’re preparing to buy a home in Doncaster, getting the gifted deposit arrangements in place early can help prevent missing paperwork from holding up your mortgage application or property purchase.
Who Can Provide A Gifted Deposit?
Parents are one of the most common sources of gifted deposits, although many mortgage lenders also accept gifts from other close family members.
Depending on the lender, this could include grandparents, siblings or other relatives.
Some lenders may consider money gifted by a friend, unmarried partner or employer. These arrangements can be assessed differently and may come with additional requirements.
Each mortgage lender has its own criteria, so it is important to establish whether they will accept a gift from the person providing your deposit before applying.
Whoever provides the money will normally need to confirm that it is a genuine gift and that they will not have a legal or financial interest in the property after the purchase completes.
What Does A Gifted Deposit Letter Need To Confirm?
A gifted deposit must be given without any expectation that it will be repaid. If repayment is expected, a mortgage lender is likely to treat the money as borrowing instead, which could affect its affordability assessment.
Your lender and solicitor will therefore normally ask for a gifted deposit letter confirming the arrangement.
The letter will usually confirm who is providing the money, who is receiving it and the amount being gifted. It should also state that the money does not need to be repaid and that the person providing it will not have an interest in the property after completion.
A signature and date will normally be required.
Some mortgage lenders have their own gifted deposit form, while your solicitor may provide a template. Having the correct document completed early can help prevent unnecessary delays as your purchase progresses.
Why Does The Source Of A Gifted Deposit Need To Be Checked?
Your mortgage lender and solicitor will need to establish where the gifted money has come from. These checks form part of the property purchase and help prevent fraud and money laundering.
The person providing the gift may be asked for proof of identity, recent bank statements and evidence showing how the money was accumulated.
For example, the funds could have come from savings, investments or the proceeds from selling a property.
Your solicitor will review the relevant evidence before the purchase progresses. If information is missing or further evidence is required, this can delay the transaction.
Having these documents available early can help keep the mortgage and legal process moving.
Can You Combine A Gifted Deposit With Your Own Savings?
Yes. A gifted deposit does not have to make up the entire deposit for your property.
You can combine your own savings with money gifted by a family member or another person accepted by the mortgage lender.
For example, you may have already saved part of the deposit yourself, with a gifted contribution providing the additional money needed to reach your required deposit.
Some buyers also combine gifted money with savings held in a Lifetime ISA, allowing their own savings and the government bonus to form part of the overall deposit.
Your lender and solicitor will usually want to establish where each part of the deposit has come from, so you should be prepared to provide evidence for both your own savings and the gifted funds.
Gifted Deposits For First Time Buyers
Gifted deposits are particularly common among first time buyers who have saved some of their deposit but need additional funds to reach the amount required.
You can use a gifted deposit alongside your own savings and, where the relevant rules allow, money held in a Lifetime ISA.
Having a larger overall deposit may reduce your LTV, which could increase the range of mortgage products available and, in some cases, provide access to a more competitive interest rate.
Receiving help with your deposit does not change the lender’s requirement to assess your income and affordability. You will still need to meet its mortgage criteria for the amount you want to borrow.
Can A Gifted Deposit Delay Your Mortgage?
Not usually. Delays are more likely to occur when the mortgage lender or solicitor is waiting for documents from the person providing the gift.
They may need to provide proof of identity, bank statements, evidence of where the funds came from and a signed gifted deposit letter.
If any of these documents are incomplete or further checks are required, it can take longer for your mortgage application and property purchase to progress.
Making sure the person gifting the money knows what they are likely to be asked for can help reduce avoidable delays.
Can You Use More Than One Gifted Deposit?
Yes. You can potentially use more than one gifted deposit when buying a property, provided your mortgage lender is prepared to accept each contribution.
For example, part of your deposit could come from your parents, with another contribution provided by your grandparents or another close family member.
Each person providing money will normally need to meet the lender’s requirements. This can include confirming that their contribution is a genuine gift, providing identification and supplying evidence showing where the funds have come from.
If you’re preparing to buy a home in Doncaster using money gifted by family, our mortgage advisors can check how the proposed deposit fits with the lender’s criteria before your mortgage application is submitted.
Date Last Edited: September 9, 2026
