Gifted Deposits for a Mortgage: Letters, Evidence and Family Questions
Using family money for your deposit? Understand gifted deposit letters, source-of-funds evidence, lender checks and the questions to settle early.
By PMS Mortgages · Published 14 October 2026 · Meet Ria Ali
Your home may be repossessed if you do not keep up repayments on your mortgage.
A family contribution can make a home purchase possible sooner, but a gifted deposit mortgage application involves more than receiving a bank transfer. The lender and conveyancer need to understand who is providing the money, where it came from and whether the donor expects anything in return.
If you are buying in Croydon, Purley or elsewhere in England, raise the contribution at the beginning of your mortgage discussion. A clear explanation helps your adviser investigate an appropriate lender and helps the legal team plan the evidence needed. This guide sets out questions to organise, rather than prescribing a letter accepted by every lender.
Start by describing the arrangement accurately
Write down the donor’s relationship to the buyer, the amount offered and any conditions discussed. Is it a straightforward contribution with no repayment expected, a loan, or a proposal giving someone rights in the property? Those are different arrangements. Tell your adviser and solicitor the actual intention before signing a declaration.
Some lender forms include specific provisions for particular family arrangements. That does not mean those provisions are accepted across the market. A form you find online for one lender is not permission to use the same arrangement with another. Ask which criteria apply to the mortgage you are considering.
What information might a gifted deposit letter need?
The lender may ask for its own signed form, a letter or further supporting documents. Rather than drafting a promise from memory, obtain the requirements for the actual case. The information commonly needing clarification includes:
The applicant and property details.
The donor’s identity and relationship to the applicant.
The amount being contributed.
The terms of the contribution and any expected rights or repayments.
Where the money is held and the source of the funds.
Whether the donor intends to live at the property.
Read every declaration before signing. If the wording describes an unconditional gift but the family has agreed repayment later, flag the mismatch. Changing the label does not change the underlying arrangement.
The letter and the financial evidence do different jobs
A letter explains the contribution. Evidence may be needed to show that the money exists and how it was accumulated or obtained. Nationwide’s published gifted deposit form, for example, asks about the donor, amount, funding location and possible residence at the property. Its application guidance also describes circumstances in which additional deposit evidence is needed.
Your conveyancer has separate responsibilities and may request information beyond the lender’s initial list. Ask both teams what is outstanding and whether any original or certified documents are required. A document accepted for an initial mortgage enquiry is not necessarily the complete evidence for the purchase.
A simple savings-and-gift example
Imagine a buyer planning a £320,000 purchase with £18,000 of their own deposit savings and a £22,000 family contribution. The combined deposit would be £40,000, leaving £280,000 of borrowing before any mortgage fee added to the loan. The deposit is 12.5% of the assumed price.
Those are invented arithmetic figures, not a borrowing approval or a recommended deposit. Purchase costs and a cash reserve need separate consideration. If the £22,000 is not available on the expected date, or its terms are not acceptable to the chosen lender, the plan needs to be reviewed before relying on it.
Use a short funding table showing each source, amount, whether it is already available and what evidence has been requested. Keep confirmed savings separate from anticipated gifts. That makes the next steps clearer for everyone involved.
If the money comes from overseas
Tell your adviser where the donor lives, where the money is held and how it will reach the purchase funds. Requirements can differ by lender and funding source. Allow time for requested evidence and any translations, certifications or further checks the professionals handling the case identify.
Include transfer costs and exchange-rate uncertainty in your own planning where relevant. Do not assume that an expected foreign-currency amount will produce an exact sterling deposit on a future date. Confirm the available funds and transfer arrangements without treating an estimate as a completed transaction.
When should the money be transferred?
Ask the conveyancer and adviser how to coordinate the contribution with the application and purchase timetable. Avoid moving funds repeatedly just to create a particular account balance: the professionals may still need to trace the original source. Keep the records that explain the movement of the money.
If the gift is offered before a property is chosen, explain that at the outset. When an offer is accepted, confirm the actual address and price and check whether the lender requires an updated form. Tell the teams if the contribution amount or donor changes.
Family expectations need their own conversation
Discuss the contribution calmly before it becomes part of a purchase commitment. If there are two buyers, the donor may have expectations about who benefits or what happens if the home is sold. Those questions need transaction-specific legal advice. A mortgage declaration alone should not be treated as a complete agreement between family members.
Ask a qualified professional about any tax implications for the donor or recipient if needed. This guide does not calculate inheritance tax or recommend a legal ownership arrangement. The mortgage, legal and tax discussions should describe the same facts.
Your gifted deposit preparation checklist
Confirm the amount and availability date.
Describe the terms honestly, including any conditions.
Identify the donor and the funding source.
Obtain the chosen lender’s current letter or form requirements.
Ask the conveyancer what further evidence is needed.
Keep purchase costs and cash reserves outside the deposit figure.
Report any changes before the application or purchase proceeds.
Discuss the deposit before choosing the mortgage
PMS Mortgages can investigate the mortgage implications of the proposed contribution and explain which details need checking. Explore our first-time buyer advice, read the Croydon buying checklist, or book a consultation with your deposit plans.
General information only. Acceptance depends on the selected lender, application and property. Obtain legal advice about ownership, donor rights and any repayment arrangement. We explain applicable advice fees before you proceed.
Sources and further reading
Frequently asked questions
Potentially. The donor, funding source and terms must meet the selected lender’s requirements. Tell your adviser and conveyancer before relying on the money.
No. Lenders may require their own form and declarations. Use the wording required for the actual application and disclose any conditions or repayment expectations.
Disclose the repayment arrangement. Do not sign an unconditional-gift declaration that is untrue. Ask your adviser and solicitor how the actual terms can be assessed.
Thinking about your own mortgage?
Speak to an adviser about what this means for your situation. There is no charge for an initial conversation.