Home & property · 5 min read
Using a gifted deposit: what to organise before the mortgage application
A gifted deposit can be a normal part of a home purchase, but lenders and conveyancers may need to understand where the money came from and the nature of the gift. Organising that story early reduces avoidable friction later.
Be clear about gift versus loan
A genuine gift and a repayable family loan create different financial and legal positions. Do not describe money as a gift if there is an expectation that it must be repaid.
Keep the source of funds traceable
The person providing the money may need to evidence the source and movement of funds. Avoid unnecessary transfers through multiple accounts if a clean, explainable route is available.
Tell the relevant professionals early
The mortgage adviser, lender and conveyancer may each have requirements around gifted funds. Raising the issue early is better than discovering a missing declaration shortly before exchange or completion.
Keep your own cash plan separate
A gift may improve the deposit, but buying costs and an emergency reserve still need to be planned. Do not assume every pound of family support should automatically be added to the purchase price.
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