If you’re saving for your first home and wondering whether your parents can help with the deposit, the answer is yes, and it’s more common than you might think.
Many of the first-time buyers I work with receive help from family members to boost their deposit. It’s a generous and meaningful way for parents to support their children’s journey onto the property ladder. But it’s also important to understand how this process works from a mortgage lender’s perspective.
When a parent gives money towards your deposit, most lenders will want to know where the funds have come from. They need to make sure the deposit isn’t a loan that needs repaying, as that could affect your ability to afford the mortgage repayments. So your parents will usually need to sign something called a gifted deposit letter. This confirms that the money is a gift, that they don’t expect it to be repaid, and that they won’t have any ownership rights over the property.
Lenders will also carry out standard checks on the origin of the funds. This is part of anti-money laundering regulations and involves seeing a paper trail of where the money came from. It might mean showing a bank statement or a savings history. It’s all part of making sure the mortgage application is transparent and meets legal requirements.
I always walk my clients through this process carefully. It’s not difficult, but it does need to be handled properly to avoid any delays or misunderstandings later on.
A gifted deposit can make a huge difference to what you’re able to borrow. It might mean you can access better mortgage rates, reduce your monthly payments, or get onto the property ladder sooner. If you’re lucky enough to have family who want to help, it’s definitely worth understanding how to make it work in your favour.
I’ve recorded a quick video on this exact topic that breaks it all down in simple terms:
And if you or your parents have questions about how a gifted deposit works, what lenders look for, or how to get started, I’m more than happy to help. I’ve supported many families through this process and can guide you step by step to make it as smooth as possible.
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