Posted Date: 18/11/2025
Saving for a deposit can be one of the hardest parts of buying your first home. For many first-time buyers, a gifted deposit from a family member provides valuable help in getting onto the property ladder.
Why It Matters
A gifted deposit is money given to you by someone else, often a parent or close relative to use toward your home purchase. Lenders need to confirm that this money is a genuine gift and not a loan that must be repaid, as this could affect your affordability and eligibility for a mortgage.
Moving Forward
If you’re using a gifted deposit, make sure your lender knows early in the process. The person gifting the money will usually need to provide a signed declaration confirming that it’s not a loan.
At Muuvin Mortgages & Protection, we offer no-obligation calls to help first-time buyers understand how deposits work and what steps to take before applying. You can also view more information about deposits and first-time buyer mortgages on our dedicated page: First-Time Buyer.
Who can gift a deposit?
Usually, close family members such as parents or grandparents, though lender rules may vary.
Does a gifted deposit affect my mortgage?
It shouldn’t, as long as it’s properly declared and documented.
Do I have to pay tax on a gifted deposit?
Not immediately, though inheritance tax could apply later depending on circumstances.
Disclaimer
Your home may be repossessed if you do not keep up repayments on your mortgage.
This article is for general information only and should not be taken as advice. Mortgage applications are subject to status and lender criteria. The information provided is correct as of the date it was posted and may be subject to change without notice.
