A gifted deposit is money that’s given to a homebuyer to help them put down a deposit on a property. It’s often provided by a family member and must be treated as a gift rather than a loan. This means the person giving the money has no expectation of repayment and no claim on the property.
For a first time buyer in Harrogate, receiving a gifted deposit can make it easier to secure a mortgage, especially when house prices are rising and it’s taking longer to save. With extra support from family, you may find you’re able to move forward sooner than expected.
How do gifted deposits work?
If you’re using a gifted deposit as part of your mortgage application, the lender will ask for written confirmation that the money is a gift. They’ll also need to see evidence of where the money has come from. These steps help the lender carry out financial checks and confirm the gift doesn’t need to be repaid.
Whether you’re using gifted funds as your full deposit or topping up your own savings, the process works in much the same way. If you’re exploring 5% mortgages in Harrogate, a gifted deposit could be the final piece that helps you meet that five per cent minimum.
Who can gift a deposit for a mortgage?
Most lenders will accept gifted deposits from close family members. This typically includes parents, grandparents, or sometimes siblings. Gifts from other sources may be considered in some cases, though they’re often subject to stricter checks.
As a mortgage broker in Harrogate, we’ll make sure you’re matched with a lender that’s comfortable with your specific deposit setup. It’s always best to discuss this early on, so we can guide you through what’s needed.
Do you have to declare a gifted deposit?
Yes, all gifted deposits must be declared as part of your mortgage application. Lenders need a clear understanding of where your deposit is coming from, and they’ll only accept it if the funds are genuinely being given without any strings attached. The person gifting the money will be asked to sign a declaration confirming they’re not expecting repayment.
They may also need to provide documents such as ID and recent bank statements to support this. These checks are part of standard mortgage application procedures and help ensure everything is above board.
If I get a gifted deposit, can I add my own savings to it?
You can use both a gifted deposit and your own savings together. This is quite common, particularly for buyers who have managed to save part of the deposit themselves but need help reaching the full amount. By combining the two, you may be able to access a wider choice of mortgage deals or reduce the amount you need to borrow.
If you’re a first time buyer in Harrogate, our mortgage advisors will explain how a gifted deposit affects your mortgage options. We’ll walk you through the documents you’ll need and work with the lender on your behalf to keep things moving smoothly.
Date Last Edited: August 27, 2025
