Mortgage Guides

Gifted deposits

gifted deposit present for a house

What is a gifted deposit?

When you take out a mortgage, you'll need to place a mortgage deposit. This is an amount of money you pay upfront towards the cost of the property.

A gifted deposit means someone else, often a family member, provides the funds for some, or all of, your mortgage deposit.

How does a gifted deposit work?

As the name suggests, a gifted house deposit is a gift. This means the person giving the money doesn’t expect repayment.


When you receive a gifted deposit, make sure you can prove the transaction is legal. This is often very easy to do – especially if it’s a mortgage deposit gift from your parents or a friend.


All you need to do is:

  1. 01

    Confirm the gifted deposit amount with the person who gave you the money and add it to your deposit savings. It’s a good idea to get it in writing.

  2. 02

    Declare your gifted deposit. When putting down your mortgage deposit, you need to declare how much of it was a gift. You can do this by handing in a gifted deposit letter to your lender.

  3. 03

    Provide any extra details. Your lender might require further information to confirm your gifted deposit. For example, you might be asked to provide:

    • To confirm the identification of your donor – for example, your parents.
    • Bank statements. To help confirm where the funds came from. Lenders may also need to perform anti-money-laundering checks.
  4. 04

    If your gifted deposit is accepted, you can then go through the usual mortgage application process.

Illustration of a pink envelope with pink pound icons

Why do I need a gifted deposit letter?

If part or all of your house deposit has been gifted, a mortgage lender may ask for proof that it’s a gift. A gifted deposit letter shows that you’re not expected to pay the amount back. This is sometimes referred to as a 'gifted deposit declaration'.

A gifted deposit letter is signed by the gifting party or parties. Your conveyancer or lender can help ensure the letter has everything it needs to support your mortgage application. 

What to include in a gifted deposit letter

Most gifted deposit letters will require the following:

  • The name of the receiver of the gifted deposit.
  • The source of your gifted deposit. For example, your parents, or a friend.
  • The relationship between you and the donor/s.
  • The value of the gifted deposit.
  • That the donor expects no repayment.
  • That the donor makes no claim to the property.

Can I use a gifted deposit as a first time buyer?

Yes, you can use gifts to help make up a mortgage deposit for a first time buyer mortgage.

The most common scenario is children receiving a mortgage deposit gift from their parents.

Using a gift as a house deposit is different to taking out a loan. A gifted deposit is usually received without any expectation of repayment or stake in the property.

Note: You can’t use an unsecured repayable loan towards your NatWest mortgage deposit. This includes those from a bank or other financial institution.

Joint picture frame and a piggybank

What is NatWest's gifted deposit policy?

At NatWest, we currently don't have maximum gifted deposit limits. This means that a gifted deposit can be used to cover any percentage of the total deposit within a property purchase.

Looking to take out a NatWest mortgage with a gifted deposit? We require a confirmation letter or email (no signature required) from the gifting party. This should confirm whether the gift is either non-repayable or repayable.

If repayable, the details of the repayment should be outlined in the letter. This will then be included in affordability calculations. This is how we decide how likely you are to be able to afford mortgage repayments.

Our first time buyer guide

Getting on the housing ladder can be a daunting prospect. Our first time buyer guide is here with some useful information, tips and things to consider.

More tips on saving for your deposit

Saving for a deposit can be difficult. There's no silver-bullet, but there are things you can do to make the process easier.

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Gifted deposits: FAQs