Can I use a gifted deposit for a mortgage?
Yes, you can use a gifted deposit for a mortgage. Most UK lenders accept gifted deposits from immediate family members. The person giving the gift must sign a letter confirming no repayment is expected.
Gifted deposits are very common, especially for first-time buyers. Most lenders accept gifts from immediate family - typically parents, grandparents, or siblings. The giftor must provide a signed 'gift letter' confirming the money is a gift with no expectation of repayment. Lenders also require proof of where the gift money came from (usually 3-6 months of bank statements) as part of anti-money laundering checks. Some lenders require borrowers to contribute some of their own savings alongside the gift, though many accept 100% gifted deposits.
Key Points
- 1Most lenders accept gifts from immediate family
- 2A signed gift letter is required
- 3Proof of gift source needed (bank statements)
- 4Some lenders require personal savings too
- 5Gifts from friends are harder to use
Next Steps
- 1Confirm gift amount with family
- 2Get gift letter template from solicitor
- 3Gather bank statements showing gift source
- 4Inform mortgage adviser about gift
- 5Transfer funds via solicitor at completion
Why This Matters for Your Mortgage
Understanding these details helps you make informed decisions during the mortgage process. Every element of your application—from deposits to documentation—affects your approval chances and the rates you can access.
Lenders assess applications holistically, weighing multiple factors together. Knowing what they look for allows you to present the strongest possible application. This is particularly important for non-standard situations where lender criteria varies significantly.
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Related Questions
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First-Time Buyers
Content reviewed: January 2026
CeMAP awarded by The London Institute of Banking & Finance. Cert CII (MP) awarded by the Chartered Insurance Institute.