Mortgage Advisors
Gifted Deposits
Gifted deposits can be the difference between getting on the property ladder or not, or, in most cases, not for a few years time and after a lot of struggle. As a parent, I would love to be in a position to help my children onto the market when they're ready, what a wonderful achievement.
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So, gifted deposits should be celebrated.
For lenders gifted deposits are widely accepted, especially when they come from a family member who is related by blood, law or marriage. ​
You don't need to have the family member transfer any cash into your account, the transfer of funds will be handled by your solicitor and so the gifter can transfer the funds directly to the solicitor when it is requested. ​
Proof of Deposit
In most cases the lender will request a gifted deposit form to be completed as a part of the application process for proof of funds and to confirm that the funds are a true gift are not expected to be repaid. Many of them have their own form designed specifically for this purpose and your broker will supply this at the point of application. ​
​Gifts From Non-Family Members
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When a gift comes from a non family member, a smaller number of lenders will find this acceptable, however some will, and in fact some very prominent high street lenders will. The lender would again, require a gifted deposit form which clearly states that the funds are not to be repaid. They may also ask for a bit of background to understand the generous gift.
As always, every lender is very different in their approach. They will have different processes and appetites for different scenarios, that's why brokers are so useful and why it's always worth having an expert with you from the very first stages of buying a property.​If you ever need our help, you know where to find us,