Yes, you can accept a deposit gift, and often lenders will accept you for a mortgage with a gifted deposit, but it must be a gift, and not a loan. They’ll require a document stating the gifter’s name, the relationship to the recipient and a statement declaring the deposit money is a gift, and not a loan. Some lenders will also ask the person gifting the deposit to sign a document relinquishing any claim or interest they might have in the property.
It’s very important that the gifted deposit has traceable origins, as your solicitor has a duty to check the source of funds.
This can be an ideal option for parents, or grandparents who want to help their children get onto the property ladder. It’s worth noting that some lenders will only accept gifted deposits from close relatives, so if you’re applying for a mortgage with a gifted deposit, it’s worth going to an expert mortgage broker, such as Clever Mortgages, to make sure the right lender is approached.
