My Conveyancing Specialist · A plain-English guide for buyers and sellers in England and Wales · Last reviewed September 2026
If a family member is helping with your mortgage deposit, your mortgage lender and your solicitor will both want a gifted deposit letter — a short signed declaration confirming the money is a genuine gift, not a loan. Here’s what the letter needs to say, a free template you can adapt, and the ID and source-of-funds proof your conveyancer will ask for alongside it.
In short
- A gifted deposit letter is a signed declaration that money towards your deposit is an unconditional, non-repayable gift with no stake in the property.
- Your mortgage lender needs it to be sure the deposit isn’t a hidden loan; your solicitor separately needs to evidence where the money came from for anti-money-laundering checks.
- The letter should name the donor and buyer, state the amount and their relationship, and confirm the gift is non-repayable with no claim on the property.
- Most gifts come from close family; lenders are stricter about family and friends who are more distant.
- There’s no immediate tax on you, but the 7-year inheritance tax rule can apply to the donor — worth checking for larger gifts.
What is a gifted deposit letter?
A gifted deposit is money given to help fund the deposit on a property, usually by a parent or other close family member, with no expectation of repayment. A gifted deposit letter — sometimes called a gift declaration or declaration letter — is the signed statement that confirms this. It tells everyone involved that the money is a true gift: the person gifting it won’t ask for it back, won’t charge interest, and won’t own any share of your own home.
Gifted deposits are now mainstream. Research in 2026 found more than half of first-time buyers relied on family gifted deposits, loans or inheritance to get onto the property ladder — which is exactly why mortgage lenders have built careful rules around them.
How does a gifted deposit work?
Two different organisations need reassurance, for two different reasons — so you may end up giving similar information twice. That’s normal, not a mistake. Your mortgage lender needs to be satisfied the deposit is a genuine gift and not a loan, because a loan from family would be an undisclosed debt that affects your mortgage application and the mortgage deal you can afford, and anyone with a stake in the property would complicate matters if the home were ever repossessed. Most lenders provide their own gift declaration form via your mortgage broker or conveyancer. Your conveyancing solicitor has a separate duty under anti-money-laundering regulations to evidence the source of the funds — not just to confirm the gift exists, but to prove where the money genuinely came from.
What a gifted deposit letter must include
Wording varies between lenders, but a gifted deposit letter should generally cover:
- The donor’s full name and current address, and the buyer’s name
- The relationship between them (for example, parent to child)
- The amount being gifted and the property address it relates to
- A clear statement that the gift is unconditional and non-repayable, with no interest and no stake or claim in the property
- Confirmation the person giving the money won’t be living in the property (if they will, tell your broker — it can affect the mortgage)
- Confirmation the donor is solvent and financially stable, and does not face bankruptcy or insolvency proceedings
- A note on the source of the funds (savings, a property sale, inheritance, or another asset)
- The donor’s signature and date (some lenders want it witnessed)
Gifted deposit letter template
You can adapt the template below. Check whether your lender has its own required form first, as many do — your conveyancer will confirm.
[Donor's full name] [Donor's current address] [Date] To whom it may concern (the buyer's conveyancer and mortgage lender) Re: Gifted deposit for the purchase of [property address] I/We, [donor full name(s)] of [donor address], confirm the following in relation to [buyer full name(s)], who is my/our [relationship, e.g. son]: 1. I/We am/are gifting the sum of £[amount] towards the deposit for the purchase of the above property. 2. This is an outright, unconditional and non-repayable gift. I/We expect no repayment and will charge no interest. 3. I/We have no legal or beneficial interest, stake or claim in the property, now or at any time in the future. 4. I/We will not be living in the property. 5. I/We am/are solvent and not subject to any current or pending bankruptcy or insolvency proceedings. 6. The source of the gifted funds is [e.g. personal savings / sale of a property / inheritance]. Signed: ............................ Date: .................. [Donor name] Witness (if required): [name, signature and address]
What your solicitor will separately ask for
To meet their anti-money-laundering checks, your conveyancer will usually ask the gift giver for:
- Photo ID (a driving licence or passport) and proof of current address (such as a utility bill or bank statement)
- Bank statements, typically covering the last 3 to 6 months, showing the money in the donor’s UK bank account
- Evidence of the source of the funds where the money arrived recently — for example a completion statement from a property sale, or a grant of probate for an inheritance
- A clear paper trail showing the cash gift moving from the donor’s own account, not through a third party
Larger or overseas gifts attract more scrutiny and may need further source-of-wealth evidence. Providing this promptly is one of the easiest ways to keep your purchase and mortgage moving.
Who can give a gifted deposit?
Most mortgage lenders prefer gifts from close family members — parents, grandparents and siblings. Many will also accept gifts from step-parents, step-grandparents, parents-in-law, brothers- and sisters-in-law, adopted children, and half-siblings, provided the donor is a genuine blood relative or close family. Gifts from family and friends who are more distant, or from an unrelated friend, are accepted by fewer lenders and usually face extra checks — so it’s worth confirming your lender’s policy through an experienced mortgage broker before relying on one. More than one person can contribute, and you can add a gift to your own separate saving pot.
Are there tax implications?
There’s no immediate tax for you as the recipient. The main thing to be aware of affects the donor: under the inheritance tax 7-year rule, if the person dies within seven years of making the gift and their estate is above the nil-rate band, the gift may count towards inheritance tax on a sliding scale (taper relief), subject to the £3,000 annual gift exemption. For most family gifts of a few thousand to tens of thousands of pounds this is a non-issue, but for larger sums it’s worth the donor taking advice from a qualified tax adviser.
Can I write my own gifted deposit letter?
Yes — a declaration letter you write and the donor signs is perfectly valid, provided it says what the lender needs. The important point is honesty: the money must genuinely be a gift. Declaring “no repayment” on the letter while the family privately treats it as a loan is mortgage fraud, not a paperwork shortcut. Because many lenders have their own template or specific wording, the safest approach is to check your lender’s requirements with your mortgage broker and let your conveyancer confirm the letter is acceptable before it’s signed — a few steps that keep your mortgage application on track.
Is a gifted deposit letter legally binding?
It’s a formal signed declaration that your mortgage lender and conveyancer rely on, and by signing it the donor confirms in writing that the money is a gift with no right to repayment and no stake in the property — so they can’t later claim it back, or a share of the home, on the strength of it. It isn’t a substitute for a deed of trust: if someone contributing money wants to keep an interest in the property or be repaid, that should be set up as a loan or a deed of trust, not declared as a gift.
Frequently asked questions
Can I write my own gifted deposit letter?
Yes, as long as it contains what the lender requires and is a genuine gift. Many lenders have their own form, so check first and let your conveyancer confirm the wording.
What documents does my solicitor need for a gifted deposit?
The signed letter, the donor’s photo ID and proof of address, the donor’s recent bank statements, and evidence of where the money came from.
Does a gifted deposit letter need to be witnessed?
Not always, but some lenders ask for the donor’s signature to be witnessed, and occasionally for the donor to take independent legal advice on larger gifts. Your conveyancer will tell you.
How much of a deposit can be gifted?
Many lenders accept up to 100% of the mortgage deposit as a gift, though some want you to contribute part from your own savings. Policies vary, so check with your mortgage broker.
Do I have to declare a gifted deposit to HMRC?
There’s no tax return to file for receiving the gift, but keep records — the donor’s estate may need them for inheritance tax if the person dies within seven years.
This guide is general information as at September 2026 and is not financial, legal or tax advice. Lender requirements vary, and inheritance tax depends on individual circumstances — check the position with your mortgage broker, conveyancer or a qualified tax adviser.
Buying with help from family? Get a fixed-fee conveyancing quote today → and we’ll handle the gifted-deposit paperwork as part of your purchase.