Can my parents gift me a deposit?

Yes. Parental gifts are the most commonly accepted type of gifted deposit. You'll need a signed letter and your solicitor will verify the source of funds.

Does a gifted deposit affect stamp duty?

No. The stamp duty calculation is based on the property purchase price, not where your deposit money comes from.

Can I use a gifted deposit with Shared Ownership or the Lifetime ISA?

Yes. Gifted deposits can be used alongside most current government schemes, including Shared Ownership, First Homes and the Lifetime ISA bonus. (The Help to Buy ISA closed to new accounts in 2019 and the England Help to Buy Equity Loan scheme closed in 2023.)

Is there a tax on gifted deposits?

There's no immediate tax on receiving a gift. However, if the gifter passes away within 7 years, the gift may be subject to inheritance tax. The gifter should seek financial advice about potential IHT implications.

Gifted Deposit Mortgages

Using a gift from family for your mortgage deposit? Most lenders accept gifted deposits — but the rules vary. We'll guide you through the requirements.

Using a Gifted Deposit for Your Mortgage

A gifted deposit is money given to you by a family member (usually parents or grandparents) to help fund your mortgage deposit. Most lenders accept gifted deposits, but they'll need a signed 'gifted deposit letter' confirming the money is a gift, not a loan, and that the giver has no financial interest in the property.

Most lenders accept gifts from immediate family
Some lenders accept gifts from non-family members
We provide gifted deposit letter templates
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Who Can Gift a Deposit?

Most lenders accept gifts from immediate family — parents, grandparents, siblings, and sometimes aunts/uncles. Gifts from friends, partners, or employers are accepted by fewer lenders but options do exist. The gifter must not be expecting repayment and must not have any legal interest in the property.

The Gifted Deposit Letter

Your lender and solicitor will require a signed letter from the person giving the gift. This must confirm: the gift amount, that it's a genuine gift (not a loan), that the gifter has no interest in the property, the relationship between gifter and recipient, and the source of the funds.

Anti-Money Laundering Checks

Your solicitor will need to verify where the gift money came from as part of anti-money laundering (AML) regulations. The gifter will need to provide bank statements, proof of savings, or evidence of a property sale. This is standard practice and nothing to worry about if the funds are legitimate.

Can You Use a 100% Gifted Deposit?

Some lenders accept a deposit that's entirely gifted — meaning you contribute nothing from your own savings. However, some lenders require you to put in at least 5% from your own funds. We'll find the right lender based on your deposit mix.