Gifted mortgage deposit: questions to settle before applying
Before using family or friends’ money towards a mortgage deposit, prepare three separate explanations: who is providing it, where it came from and whether anything is expected in return. Take those details to an appropriately authorised mortgage adviser and your conveyancer, and ask each what they need before arranging transfers or signing declarations.
This is general preparation information. A mortgage adviser can advise on mortgage suitability; your conveyancer carries out the legal work for the purchase. The government buying-process guidance linked below applies to England and Wales.
Separate the person, the money and the expectations
Start a short note for each person contributing. Record their relationship to you, the proposed contribution, whether it has already arrived and any timing you need to discuss. Keep contributions from different people separate in your notes.
Then describe where the money came from, as far as you understand it. Finally, write down what everyone expects afterwards: is repayment expected, are there conditions, or has anything been left undecided?
Treat these as separate questions in your preparation. Ask yourself whether your notes explain both who sent the money and how it was built up. If you and the contributor understand the arrangement differently, flag that before completing paperwork rather than choosing a description that hides the disagreement.
Ask what evidence is needed for the money’s origin
The government’s home-buying guide explains that buyers will need identity, address and source-of-funds information at several stages. Its source-of-funds examples include savings, inheritance, property-sale proceeds and financial gifts from family or friends.
Prepare an outline of the contribution’s origin, then ask which records are needed to explain it. Avoid assuming that a single transfer receipt will answer every question. Equally, confirm what the recipient requires before gathering or circulating a relative’s financial records.
If the money has moved between accounts, or someone other than the contributor arranged the transfer, describe that in your notes and ask what explanation is needed. Keep missing information visible rather than guessing dates or filling gaps yourself.
Clarify expectations before signing statements
Ask the contributor directly whether they expect the money back, whether any conditions apply and whether they expect any interest in the property. Write down uncertainties in ordinary language for the adviser and conveyancer to consider.
Do not sign a statement saying that no repayment is expected if that does not reflect the arrangement. Ask the professionals how the actual circumstances should be described and what needs resolving before you proceed.
This checklist does not establish whether a lender will accept the contribution. It also does not determine ownership, inheritance or tax consequences. Ask your conveyancer which legal questions need advice and whether separate tax advice is needed for your circumstances.
Use one brief for two conversations
Copy this preparation sheet and add a separate entry for each contribution. These questions are preparation prompts, not a lender’s document requirements.
| Topic | Your preparation note | Question to resolve |
| Contributor | Who is providing the money and their relationship to you | What information is needed about this person? |
| Origin | Your understanding of where the money came from | Which records are needed to explain its origin and movement? |
| Expectations | Any repayment, conditions or unresolved points | What must be clarified before declarations are signed? |
| Timing | Whether money has arrived and any proposed transfer date | What should happen before the next transfer? |
| Responsibilities | Questions sent to the adviser and conveyancer | Who will confirm each outstanding point? |
For example, if a contributor describes the money as a gift but also mentions being repaid later, record both statements and ask for clarification. Do not turn that uncertainty into a completed declaration yourself. This is a conversation example, not a ruling on how a lender or conveyancer will treat the arrangement.
Ask the adviser what the proposed lender needs and ask the conveyancer what is required for the legal work. Request each recipient’s own instructions rather than assuming one completed checklist covers both. Add the date of each answer and the person responsible for any follow-up.
Check the recipient before sharing documents
Before sending sensitive records to a mortgage firm, follow the FCA’s guidance on clone firms. Use its Firm Checker to check authorisation, permission for the service and matching contact details. A copied firm reference number alone does not establish that you are dealing with the genuine firm.
Use checked contact details to confirm how documents should be shared. The Financial Services Register guidance also explains appointed representatives, which carry out activities on behalf of a principal firm. If that arrangement applies and the permitted service is unclear, ask the principal to confirm it.
You can begin a shortlist through the Local Mortgage Brokers directory and use our questions for choosing a mortgage broker to compare services. A directory listing or website review does not verify FCA permissions or suitability.
Aim to finish your conversations with a clear record of what remains unanswered, who will resolve it and what must happen before money or declarations are sent.