Building Society Gifted Deposit Mortgage Guide UK

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UK Gifted Deposit Mortgage Guide · 2026

Building Society Gifted Deposit Mortgage Guide UK

A gifted deposit mortgage allows you to use money given by another person towards buying a home. Many UK building societies accept gifted deposits, including gifts from parents or grandparents. Some accept gifts from a wider range of people, but the donor, source of money and conditions attached to the gift must meet the lender’s rules.

The important part is proving that the money is a genuine gift rather than a loan you must repay. A building society may require a gifted deposit declaration, identification and evidence showing where the money came from. Your solicitor or conveyancer will also need to complete financial and legal checks.

This guide explains who can gift your deposit, what happens when parents provide all the money, which documents are needed, how lender rules differ and how to avoid delays between your mortgage application and exchange of contracts.

Check Gift Eligibility Documents Checklist Compare Building Societies
Quick answer: A gifted deposit can fund some or all of your required deposit if the lender accepts the donor and the arrangement. Most straightforward gifts must be non-repayable and must not give the donor ownership rights in the property. Always disclose the gift before the lender issues the final mortgage offer.

Editorial review: 13 October 2026. UK-wide guidance based on official building society and GOV.UK information. Individual mortgage terms, gifted deposit forms and lending requirements can change.

Gifted Deposit Mortgage: Quick Facts

Are gifts accepted? Yes, subject to each building society’s current lending criteria.
Common donors Parents, grandparents and other qualifying family members. Wider donor eligibility varies.
Typical declaration The gift is unconditional, non-refundable and gives no ownership rights, unless an expressly permitted arrangement applies.
Proof of funds Donor bank statements, identification and evidence of the original source of money may be required.
Can the whole deposit be gifted? Some lenders permit 100% of the applicant’s deposit to be gifted.
When to tell the lender During the mortgage application, before relying on the gifted funds.
Important distinction: a gifted deposit does not mean the mortgage itself is interest-free or guaranteed. You must still satisfy the lender’s income, affordability, credit, property and loan-to-value checks.

Who Can Give You a Mortgage Deposit?

Your donor could be a parent, grandparent, another relative or, with certain lenders, someone outside your family. The correct answer depends on the specific building society and mortgage product.

Two UK lenders illustrate why checking the donor criteria matters. Nationwide says its gifted-deposit rules can allow anyone aged over 18 to provide a gift, subject to its conditions. Skipton’s first-time buyer guidance describes gifted deposits from family members.

Potential donor
Typical situation
What to verify
Parent
A parent gives savings to help a child buy a first home.
Gift declaration, source of funds and any planned occupation.
Grandparent
A grandparent provides part or all of the deposit.
Relationship evidence where required and donor identification.
Sibling or other relative
Another family member contributes towards the purchase.
Whether that relationship is accepted by the lender.
Unrelated person
A friend or other non-relative wants to provide funds.
Some lenders accept this; others restrict gifts to qualifying relatives.
Overseas donor
A relative living abroad wants to send the deposit.
Residence restrictions, enhanced source-of-funds checks and currency transfers.
Ask before transferring: give the lender the donor’s relationship to you, country of residence, gift amount and proposed source of funds. These four details help establish whether the arrangement meets its policy.

What Counts as a Genuine Gifted Deposit?

A conventional gifted deposit is money the donor gives you without expecting repayment or acquiring a share of your new property. That is materially different from borrowing £20,000 from a parent with a private agreement to repay it after completion.

Usually a genuine gift

  • No repayment is expected.
  • No interest is payable to the donor.
  • The donor receives no share of the property.
  • The donor does not acquire a right to sale proceeds.
  • The arrangement is disclosed accurately to the lender.
  • The donor can document the source of funds.

Needs separate lender approval

  • A family loan repayable after completion.
  • A promised share of future sale proceeds.
  • An ownership interest or beneficial interest.
  • A second charge over the property.
  • A trust arrangement protecting the donor.
  • A donor intending to live at the property.
Do not disguise a loan as a gift. If your parents expect repayment, tell the lender and solicitor. Some lenders have specific policies for family-secured or trust arrangements, but those must be disclosed and approved rather than hidden behind an ordinary gifted-deposit letter.

What if your parents want their money back?

Speak to your solicitor and mortgage adviser before applying. A family loan, joint ownership arrangement, guarantor structure or family-assisted mortgage may be more appropriate, depending on the facts and the lender’s available products.

Those arrangements are not interchangeable. They can affect affordability, property rights, taxes and what happens if the home is sold or the relationship changes.

Gifted Deposit Mortgage Document Checklist

Both the mortgage lender and conveyancer may need information about the donor. Requirements depend on the amount, source, timing and lender’s rules.

Signed lender-approved gifted deposit declaration.
Donor’s full legal name and address.
Relationship between donor and buyer.
Exact gifted deposit amount.
Donor identification if requested.
Donor bank statements showing the funds.
Evidence of the original source of funds.
Buyer’s bank statement showing receipt, if transferred.
Details of any overseas transfer.
Additional occupier or legal declaration if required.
Gift from savings The conveyancer may examine statements showing the money accumulated or was held in the donor’s account.
Gift from property sale Completion statements and related bank evidence may help establish where the money originated.
Gift from inheritance Probate, estate-distribution or solicitor correspondence may be needed to support the source.
Gift from investments Investment sale and withdrawal records may be requested alongside bank statements.
Prepare early: the source-of-funds process can take longer when money moves through several accounts, was recently received from a third party or originated overseas.

Gifted Deposit Letter: What Should It Include?

A gifted deposit letter is the donor’s written confirmation that the money is a gift and explains any relevant conditions. Many building societies use their own form. Where a lender provides one, use that form rather than assuming a generic letter will be accepted.

Information commonly included

Buyer and property details Names of applicants, property address and application reference if available.
Donor information Name, address, relationship and other identification details required by the lender.
Gift amount The exact amount contributed towards the purchase.
Gift declaration Confirmation of non-repayment and the absence of property rights, subject to the lender’s specific permitted arrangements.
Occupation information Whether the donor intends to occupy the property, where requested.
Signature Signature and date in the format required, which may include a wet-ink signature.

Illustrative wording

Example only — not an official lender form:

I confirm that I am giving £[amount] to [buyer name] towards the purchase of [property address]. This money is a genuine gift. I do not expect repayment and will not acquire an ownership or beneficial interest in the property as a result of this gift.

I understand that the mortgage lender and conveyancer may require evidence of my identity and the source of these funds.

Donor: [full name]

Relationship: [relationship to buyer]

Signed and dated: [signature and date]

This example deliberately does not replace a building society’s declaration. Do not sign a no-occupation or no-property-rights statement that is inconsistent with the real arrangement. Speak to the lender and solicitor about exceptions before signing.

Official lender formLeeds Building Society Gifted Deposit Form (PDF)

Leeds Building Society’s February 2026 declaration includes the application and property details, donor identity, relationship, amount, occupation information and confirmation that the gift is unconditional.

After opening this link:

  1. Check the form’s date and whether it remains the current version for your mortgage application.
  2. Read the donor-residency restriction before completing anything.
  3. Enter the mortgage application and property details requested.
  4. Confirm the gift amount and donor relationship accurately.
  5. Read the declaration about repayment and property rights.
  6. Follow the signature requirement. The February 2026 form specifies wet-ink signatures rather than digital signatures.
  7. Submit through the route directed by your broker or conveyancer.
Leeds-specific restriction: its February 2026 form states that gifted deposits from non-UK residents are not acceptable. Do not assume the same rule applies to every building society.

Why the Lender and Solicitor Need Proof of the Gift

Mortgage deposit checks are not limited to whether the buyer has sufficient money. The lender and conveyancer must also understand the source and nature of the funds and comply with relevant financial crime and anti-money-laundering requirements.

A bank statement showing £30,000 arriving in the buyer’s account is not necessarily enough to establish its origin. Further evidence may be needed showing where the donor obtained that £30,000.

Original source
Possible evidence
Potential issue
Regular savings
Savings statements and account history.
Large unexplained recent credits.
House sale
Completion statement and receiving-account evidence.
Funds not yet released or sent from another party.
Inheritance
Estate correspondence, distribution documents and statements.
Incomplete estate administration.
Investment proceeds
Investment transaction and withdrawal records.
Missing trail between sale and bank account.
Overseas funds
Foreign statements, transfer records and source documents.
Lender policy, translation or verification requirements.
Privacy and fraud warning: never send donor passports or bank statements through an unsolicited email link or messaging number. Confirm the conveyancer’s secure document-upload and payment instructions independently.

How a Gifted Deposit Changes Your Mortgage

Consider a first-time buyer purchasing a £250,000 home. These illustrations assume the lender accepts the deposit source and agrees to the mortgage amount after affordability checks.

£250,000 Illustrative purchase price.
£12,500 5% deposit.
£25,000 10% deposit.
£50,000 20% deposit.
Funding scenario
Total deposit
Mortgage and LTV
Buyer saves £12,500.
£12,500
£237,500 at 95% LTV.
Buyer saves £12,500 and parents gift £12,500.
£25,000
£225,000 at 90% LTV.
Parents gift the entire £25,000.
£25,000
£225,000 at 90% LTV.
Buyer saves £20,000 and family gifts £30,000.
£50,000
£200,000 at 80% LTV.

Illustrations only. Property valuation, fees, affordability and mortgage-product criteria can change the actual mortgage available.

Why a larger gift may help: moving from 95% to 90% or 80% LTV may increase the range of mortgage products available. It does not guarantee a particular interest rate or approval.

Building Societies With Published Gifted Deposit Guidance

Rather than relying on a generic list claiming every lender accepts all family gifts, compare the actual policies. Nationwide, Skipton and Leeds demonstrate meaningful differences in donor eligibility, disclosure and documentation.

1. Nationwide Building Society

Nationwide states that a donor can be anyone aged over 18, provided the money meets its gifted-deposit requirements. It requires a specific gifted deposit form for gifts of £10,000 or more.

Nationwide also asks applicants to disclose deposit gifts received during the last 12 months and explains that evidence requirements depend on the amount and origin of the funds. Its published policy includes specific provisions for some family trust or second-charge arrangements.

Official NationwideNationwide: Using a Gift for a Mortgage Deposit

After opening this link:

  1. Read Nationwide’s donor eligibility rules.
  2. Check whether your gift is £10,000 or more and requires its declaration form.
  3. Review the conditions attached to the gift and any family-arrangement exception.
  4. Read the evidence requirements for recent and overseas gifts.
  5. Use the currently supplied application or form-submission instructions.

2. Skipton Building Society

Skipton’s first-time buyer information states that some or all of the deposit can be gifted by a family member. The donor must be aged 18 or over, cannot live in the purchased property under the published standard arrangement, and must sign a gifted deposit declaration.

Official SkiptonSkipton: First-Time Buyer Mortgages and Gifted Deposits

After opening this link:

  1. Find the question about using a gifted deposit.
  2. Confirm the donor’s relationship and age.
  3. Read the condition that the donor cannot live in the property.
  4. Ask which current declaration form is needed for your application.
  5. Check the relevant mortgage’s LTV and affordability requirements separately.

3. Leeds Building Society

Leeds publishes a gifted deposit declaration that requires identification of the donor, relationship, amount and intended occupation. Its February 2026 form states that donors who are non-UK residents are not accepted and that a wet-ink signature is required.

The form also distinguishes whether the donor will occupy the property, in which case additional occupier documentation may be required. This should not be confused with permission to obtain an ownership interest or reclaim the gift.

Official LeedsLeeds Building Society: Intermediary Mortgage Information

After opening this link:

  1. Open the current criteria and forms resources.
  2. Check permitted donor types and residence restrictions.
  3. Confirm the current gifted deposit form and signature rules.
  4. Ask whether additional occupier declarations or conveyancer checks apply.
  5. If using a broker, have them verify the policy against your proposed product.
Do not mix lender forms: a Nationwide gifted deposit declaration is not automatically valid for Skipton or Leeds. Use the form and submission process required by the actual mortgage provider.

Can Parents Living Abroad Gift a UK Mortgage Deposit?

Sometimes, but this is one of the most lender-dependent parts of a gifted deposit application.

Nationwide’s official guidance addresses gifts coming from funds outside the UK or people living abroad. It specifies three months of statements for gifts sourced from within the EEA but outside the UK, and six months for gifts sourced from outside the EEA, where the relevant rules apply.

Leeds Building Society’s February 2026 gifted deposit form, by contrast, states that gifts from non-UK residents are not acceptable.

Donor residence Check whether the building society accepts people resident in the donor’s country.
Original fund source Prepare documents showing how the money was earned or accumulated.
Transfer route Keep a clear record of the transfer from the donor’s account through to the purchase.
Currency conversion Allow for exchange-rate changes, transfer charges and potential processing time.
Example: if a parent living in India wants to send a deposit to a buyer in England, the buyer should confirm overseas donor eligibility before the transfer. A lender that accepts domestic gifts may not accept the same arrangement from a non-UK resident.

Overseas gifts can also involve foreign exchange, tax and legal considerations in the donor’s country. Obtain suitable advice where these apply.

Is a Gifted Mortgage Deposit Tax-Free in the UK?

Receiving a genuine cash gift is not usually treated as ordinary taxable income for the UK recipient merely because the money was given to them. However, inheritance tax and other circumstances can matter for the person making the gift.

The £3,000 annual exemption

HMRC’s current guidance provides an annual Inheritance Tax gift exemption of £3,000 per person, subject to its rules. An unused annual exemption can generally be carried forward by one tax year.

The seven-year rule

Some gifts can fall within the donor’s estate for Inheritance Tax purposes if the donor dies within seven years. Whether tax is ultimately payable depends on exemptions, earlier gifts, the estate and other circumstances.

Common misunderstanding: the £3,000 annual exemption is not a maximum lawful gifted mortgage deposit. A parent can potentially give more than £3,000, but larger gifts may have Inheritance Tax implications depending on the circumstances.

Official HMRCGOV.UK: Inheritance Tax Rules on Gifts

After opening this link:

  1. Read the definition of a gift.
  2. Review the annual gift exemption and available carry-forward.
  3. Check the seven-year rule and possible exceptions.
  4. Keep records of the gift amount, donor, recipient and transfer date.
  5. Seek tax or estate-planning advice for large or complicated gifts.

Tax treatment can be more complicated where the gift is connected with property ownership, a trust, a business, a non-UK donor or another transaction. This guide does not determine any person’s tax liability.

What the Solicitor Checks Before Exchange and Completion

Your solicitor or licensed conveyancer must understand how the purchase is funded. This includes checking gifted funds and ensuring the mortgage lender is informed of material arrangements affecting the property’s ownership or security.

Donor identity Identity evidence may be requested to support legal and financial crime checks.
Source of funds The conveyancer may investigate where the donor obtained the money, not merely the bank account used to transfer it.
Gift declaration The solicitor may need confirmation that the arrangement matches the mortgage lender’s accepted gift policy.
Rights in the property The conveyancer must identify any proposed occupation, ownership claim, security or repayment obligation.
Transfer trail The money must move through an acceptable, traceable process for the transaction.
Mortgage offer conditions Additional declarations, checks or undertakings may be required before funds are released.

Should the donor send the money directly to the solicitor?

Ask the acting conveyancer first. The required process can differ depending on the lender and how the gift is documented. Do not send money into a third-party account simply because someone provides bank details by email.

Conveyancing fraud warning: fraudsters can impersonate solicitors and send altered bank details shortly before completion. Independently verify the destination account through a known, trusted contact method before transferring the deposit.

How to Apply for a Building Society Mortgage With a Gifted Deposit

The safest order is to verify the lender’s gift rules before moving money, not to discover a restriction once the sale is approaching exchange.

  1. Confirm the donor and amount. Establish who is giving the money, how much they intend to give and whether they expect anything in return.
  2. Check the lender’s policy. Confirm donor relationship, residence, age, occupation and whether the entire deposit may be gifted.
  3. Check mortgage affordability. A gift can reduce the loan needed, but your income and expenditure still need to support the mortgage.
  4. Tell the lender and adviser. Disclose the amount and nature of the gift when preparing the application.
  5. Instruct your conveyancer early. Ask what donor identity and source-of-funds evidence will be needed.
  6. Complete the required declaration. Use the correct lender form and signature method, and do not make an inaccurate declaration.
  7. Provide supporting evidence. Supply the requested statements, transfer history and original source documents through secure channels.
  8. Follow approved transfer instructions. Transfer the money only in accordance with your conveyancer’s verified arrangements.
  9. Check mortgage offer conditions. Confirm the gift and any required declarations have been accepted before exchange and completion.
Planning tip: if your donor is selling a property, withdrawing investments or sending money from abroad, start evidence checks well before the proposed exchange date. The transfer itself may be quick while verifying its source can take considerably longer.

Common Gifted Deposit Mortgage Problems

The gift is really a loan A private repayment expectation conflicts with an unconditional gift declaration. Disclose the true agreement.
The donor is not eligible Some building societies restrict gifts by relationship or country of residence.
The bank statements are incomplete Statements may show the immediate transfer but not explain the original source of funds.
The donor plans to live in the home Occupation can create additional lender and legal checks, even where the donor has no ownership interest.
The wrong form was signed Generic gift letters or declarations from a different lender can cause unnecessary delays.
The money was transferred too early Moving funds before confirming the lender’s policy can make tracing and documentation more complicated.
The gifted funds are borrowed Money borrowed by the donor can create further questions about sustainability and the true source of deposit funds.
The gift changes before completion If the donor reduces or withdraws the promised amount, the deposit, LTV and mortgage application may need reassessment.
If the lender refuses your gift: find out whether the problem is the donor, source of funds, declaration, occupation, amount or mortgage product. Another lender may have a different policy, but do not submit repeated applications before understanding the reason.

Gifted Deposit Compared With Other Family Mortgage Help

Not every family contribution must be structured as an outright cash gift. Some families want their savings protected or prefer to help with affordability rather than transfer money permanently.

Arrangement
How it works
Important difference
Gifted deposit
Family provides money towards the deposit.
Ordinarily non-repayable and without ownership rights.
Family loan
Money is advanced with an expectation of repayment.
May affect affordability and lender eligibility.
Joint borrower arrangement
Another borrower may support affordability.
Creates contractual repayment responsibilities and potentially other legal implications.
Family savings support
Qualifying family savings may support a specialist mortgage product.
Savings may be restricted or exposed to defined risks.
Discounted family purchase
Property is sold below its accepted market value.
Requires separate policy, valuation, legal and tax checks.
Consider independent legal advice: where the donor wants an ownership interest, repayment protection or a formal trust, do not use an unconditional gifted-deposit declaration to describe a different arrangement.

Related UK Building Society Mortgage Guides

These related guides can help if your family gift is being used for a first home, a small-deposit purchase or a particular mortgage structure.

Building Society First-Time Buyer Mortgage Guide UK Building Society Low Deposit Mortgage Guide UK Best Building Society 95% LTV Mortgages UK 2026 Building Society Shared Ownership Mortgage Guide Nationwide Building Society Mortgage and Member Services

A gifted deposit can solve a deposit shortfall but cannot by itself resolve inadequate mortgage affordability. Compare both the deposit policy and the borrowing assessment.

Official Gifted Deposit Resources

The most useful documents are the lender’s current gifted-deposit policy, its required declaration and HMRC’s official guidance on gifts.

Nationwide Gifted Deposit Guidance Skipton First-Time Buyer Gift Policy Leeds Gifted Deposit Declaration PDF Leeds Intermediary Criteria HMRC Inheritance Tax Gift Rules Financial Services Register

Final Gifted Deposit Checklist Before Applying

I know the exact amount being gifted.
The donor meets the lender’s eligibility rules.
The money is genuinely non-repayable, or any different arrangement is fully disclosed.
The donor understands the legal declaration.
The correct lender form is available.
Identity and source-of-funds evidence is ready.
The conveyancer knows about the gift.
Any overseas complications have been checked.
The buyer meets mortgage affordability criteria.
The transfer instructions have been independently verified.

Independent Financial and Legal Information Notice

Building-society.org is an independent UK informational website. It is not Nationwide Building Society, Skipton Building Society, Leeds Building Society, a mortgage broker, a conveyancing firm, HMRC or a regulator.

This article provides general educational information, not personalised mortgage, tax or legal advice. It does not guarantee that a lender will accept your donor, deposit, application or proposed property.

Gifted-deposit requirements, mortgage rates, product availability, lender criteria, tax rules and legal procedures can change. Confirm the relevant details with the lender, authorised mortgage adviser, conveyancer or qualified tax professional before proceeding.

Mortgage risk: Your home may be repossessed if you do not keep up repayments on your mortgage. A family gift reduces the amount you need to fund personally, but does not remove your mortgage repayment obligations.

Read the site’s Financial Information Safety Notice before using general mortgage information to make a financial decision.

Building Society Gifted Deposit Mortgage FAQs

1. Do UK building societies accept gifted mortgage deposits?

Yes. Many UK building societies accept gifted deposits, subject to the donor, amount, source of funds and mortgage product meeting their lending rules. The lender may require a signed declaration and supporting evidence.

2. Can my parents give me the entire mortgage deposit?

Some building societies allow all of the required deposit to be gifted by an eligible family member. The lender still checks affordability, credit history, the property and proof that the gift is genuine.

3. Does a gifted deposit have to be paid back?

A standard gifted deposit is non-repayable. If the donor expects repayment, it is not an ordinary unconditional gift and must be disclosed. Certain lenders may consider other family-finance structures under separate rules.

4. What should a gifted deposit letter say?

It commonly identifies the donor, buyer, property, relationship and gift amount, and confirms that the money is non-repayable and does not create property rights. Use the actual lender’s current required declaration rather than relying on a generic template.

5. Can a friend give me a mortgage deposit?

Potentially. Nationwide’s published policy allows gifts from people aged over 18 subject to its conditions, whereas other building societies may restrict acceptable donors to family members. Check with the intended lender first.

6. Can my parents gift a deposit if they live abroad?

It depends on the lender. Nationwide publishes additional evidence requirements for certain overseas gifts, while Leeds Building Society’s February 2026 form states that gifts from non-UK residents are not accepted.

7. Will the solicitor ask for my parents’ bank statements?

Possibly. The conveyancer may require statements, identification and evidence explaining the original source of gifted funds to complete financial crime, legal and lender checks.

8. Is a £20,000 gifted deposit taxable?

Receiving a genuine cash gift does not normally make it ordinary taxable income for the recipient solely because it was gifted. However, the gift can have Inheritance Tax implications for the donor’s estate depending on exemptions, previous gifts and other circumstances.

9. Can the donor live in the house after providing the deposit?

This depends on the mortgage lender. Some standard gifted-deposit policies restrict donor occupation, while others require additional occupier declarations or specific legal checks. Tell the lender and solicitor before signing any declaration.

10. When should I tell the building society about a gifted deposit?

Disclose the gift when preparing or submitting the mortgage application, before relying on the funds. Give your conveyancer the same information early so donor checks and evidence can be completed before exchange and completion.

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