Burger Menu

Gifted Deposit FAQ’s

Gifted Deposit Mortgage Advice in Beverley

In terms of gifted deposits, here are some answers to the most noteworthy questions that we receive:

Who can gift the deposit?

It tends to be “Bank of Mum and Dad” (or Gran and Grandad) that gifts the deposit to the applicant and this is acceptable to most lenders. The gift must be evidenced by way of bank statements from the donor plus their ID.

Can it be a loan rather than a gift?

In almost all circumstances it needs to be a gift and the donor will sign a letter to confirm the funds are non-refundable. They will not put a “charge” on the property you are buying. Be careful though, taking out a personal loan just before applying for a mortgage will probably have a downward effect on your credit score.  As a result, this could lead to a mortgage application being rejected. Also, the monthly payments for the loan will have to be taken into account by the mortgage lender for affordability.

Finally, how much can be gifted?

There isn’t a maximum limit on the amount of gift you can receive, although I know of at least one lender that insists you put in at least 5% deposit from your own funds.

UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.

© 2021 Beverleymoneyman

Moneyman Logo







Moneyman Logo




Moneyman Logo

Ask Your Question





    Moneyman Logo

    Moneyman Logo







    Moneyman Logo

    Book your Free Consultation

    7 Days 8am - 10pm

    Moneyman Logo

    Moneyman Logo