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UK mortgage guide

How to prove your mortgage deposit, including gifted deposits

· 5 min read

Your deposit is one of the most closely checked parts of a mortgage application. Lenders have to be sure the money is yours, is legitimate and is available. Here is how to evidence common sources of deposit.

Savings

Savings are the simplest source to prove. Provide statements for the accounts that hold the deposit, usually covering the last 3 months or more. If you moved money between your own accounts, keep statements for both to show the trail.

Proceeds from selling a property

If your deposit comes from a sale, the lender usually wants to see the sale agreement or a letter from your solicitor confirming the expected proceeds.

Gifted deposits

Many first-time buyers receive help from family. Lenders usually accept gifts from close relatives, and they require a signed letter confirming that it is a gift, not a loan.

A gifted deposit letter usually includes

  • The name and address of the donor and the recipient
  • Their relationship
  • The amount being gifted
  • A statement that it is a gift, with no repayment expected and no interest in the property
  • The donor’s signature and date

Lenders may also ask to see the donor’s bank statement showing the funds and the transfer, and the donor’s ID. Your adviser or solicitor can tell you what your lender needs.

Other sources

  • Inheritance: a solicitor’s letter or probate documents
  • Lifetime ISA or other savings schemes: statements and bonus information
  • Bonus or sale of investments: payslips or sale confirmations

Frequently asked questions

Can a friend gift me a mortgage deposit?

Most lenders only accept gifts from close family. Check with your lender or adviser.

Does a gifted deposit need to be repaid?

A gift must not be repayable, and the donor usually cannot have any claim on the property. A loan is treated differently and may not be accepted as a deposit.

How long should the deposit be in my account?

It varies, but many lenders like to see funds in place for a period before the application. Ask your lender.

Sources and further reading

More mortgage guides

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