A gifted deposit is money given to a homebuyer to help cover the deposit on a property. It’s usually provided by a close family member and must be classed as a gift, not a loan.
The person giving the money confirms in writing that they don’t expect it to be repaid. From a lender’s point of view, this distinction matters, as it affects the risk assessment of the mortgage application.
If you’re a first time buyer in Grimsby, a gifted deposit can make a big difference. It may help you meet the minimum deposit required or allow you to access a better mortgage deal with lower interest rates.
How do gifted deposits work?
When a family member provides funds as a gift, the mortgage lender will need formal confirmation that the money has been given freely. This typically involves a signed declaration from the person gifting the deposit.
The lender will also ask for proof of where the money came from, often in the form of bank statements, to make sure it passes standard financial checks.
Gifted deposits can be used alongside your own savings or as the full deposit amount. If you’re looking at 5% mortgages in Grimsby, receiving help from a relative could make that 5% target more achievable.
Who can gift a deposit for a mortgage?
Most lenders are happy to accept gifted deposits from close family members. This usually includes parents, grandparents, and sometimes siblings. Gifts from people outside the immediate family are less commonly accepted, as lenders prefer a clear connection between the giver and the buyer.
As a mortgage broker in Grimsby, we’ll let you know which lenders are likely to accept the gift and what documents are needed. This makes the process more straightforward from the beginning.
Do you have to declare a gifted deposit?
Any gifted deposit must be declared during the mortgage application process. Lenders need full transparency on where your deposit is coming from, whether it’s your own savings, a gift, or a combination of both.
The person gifting the money will need to provide a declaration stating that the funds are a gift, and they won’t have any ownership of the property once the purchase is complete.
These checks are a normal part of the application, and they help ensure the lender has a full picture of the financial arrangements involved.
If I get a gifted deposit, can I add my own savings to it?
Yes, it’s completely acceptable to combine a gifted deposit with your own savings. In many cases, this helps boost the overall deposit and can give you access to more competitive mortgage options.
For a first time buyer in Grimsby, even a small top-up from family can make a meaningful difference.
Our mortgage advisors regularly work with buyers who are using a mix of gifted funds and their own savings. We’ll explain how this affects your mortgage choices and make sure everything is handled properly.
Date Last Edited: August 27, 2025
