A gifted deposit is money given to a homebuyer to help cover the deposit required when buying a property. It usually comes from a family member and must be provided as a gift, not a loan.
This means the money doesn’t need to be paid back, and the person giving it won’t have any ownership in the property.
If you’re a first time buyer in Scunthorpe, a gifted deposit can help reduce the time it takes to save and may make it easier to get a mortgage approved. This type of support from family is increasingly common, particularly for buyers working towards a five or ten per cent deposit.
How do gifted deposits work?
When a gifted deposit is part of a mortgage application, lenders will ask for written confirmation that the money is a gift with no repayment expected. They will also need to see evidence of where the funds have come from, usually through recent bank statements.
These steps are part of standard financial checks and help confirm that the funds are suitable for use as a mortgage deposit.
If you’re applying for 5% mortgages in Scunthorpe, receiving a gift from family might help you reach that minimum deposit sooner or give you access to a better range of mortgage options.
Who can gift a deposit for a mortgage?
Lenders are usually happy to accept gifted deposits from close family members, such as parents or grandparents. In some cases, other relatives may be considered. Lenders typically prefer to see a clear connection between the person gifting the money and the person buying the home.
As a mortgage broker in Scunthorpe, we’ll explain which lenders are likely to accept the gift and help you prepare the documents needed. It’s important to speak with a mortgage advisor early so everything can be set up properly from the start.
Do You Have to Declare a Gifted Deposit?
All gifted deposits must be declared when applying for a mortgage. Lenders need to know exactly where your deposit is coming from, and they won’t accept gifted money unless there’s proof that it isn’t being lent informally. The person gifting the deposit will need to sign a declaration confirming that the money is being given freely.
They may also be asked to provide ID and supporting evidence of the funds. These checks are routine and help lenders meet their legal responsibilities when approving a mortgage.
If I get a gifted deposit, can I add my own savings to it?
Yes, you can use a gifted deposit alongside your own savings. This is quite common and often strengthens your mortgage application. Many buyers are able to save a portion themselves but need a helping hand to meet the full deposit amount.
If you’re a first time buyer in Scunthorpe and plan to use both your own savings and a gifted deposit, our mortgage advisors will explain how this affects your options and guide you through the process from start to finish.
Date Last Edited: August 27, 2025
