Decide whether it is a gift or a loan
A genuine gifted deposit is money given without an expectation of repayment. If there is an agreement to repay it, interest to pay or an intended ownership interest, tell your adviser and conveyancer. Do not describe repayable money as a gift.
Discuss the arrangement together before applying. Be clear about the amount, when it will be available and whether the person providing it expects any rights over the property. A mortgage lender needs an accurate description of the arrangement, not simply a letter saying “gift”.
Check the lender’s donor rules
Lenders differ on who can provide a gifted deposit, what relationships they accept and which evidence they require. Acceptance by one lender does not mean every lender will accept the same arrangement.
Tell MOVA who is helping, their relationship to you, where the funds are held and whether any donor will live in the property. If support involves someone being named on the mortgage or title, or providing security rather than cash, explain that too: it is a different arrangement and needs its own assessment.
Prepare the letter and evidence
A lender may require a gifted deposit declaration identifying the donor and buyer, their relationship, the property, amount and the terms of the gift. Use the lender’s required form or wording once your adviser confirms it.
- Have donor identification and evidence of the funds available if requested.
- Be ready to explain the original source, such as savings, a sale or inheritance.
- Keep records of transfers so the movement of the money can be traced.
- Tell your conveyancer early: their source-of-funds checks are separate from the mortgage assessment.
Confirm exactly what is required before sending documents. A gift letter alone does not necessarily complete all the checks.
Keep the family and legal position clear
A family gift can raise questions about ownership, separation, inheritance and the donor’s own financial position. Obtain legal or tax advice where needed; a mortgage conversation does not resolve those questions.
For a joint purchase, discuss how contributions and ownership should be recorded with your conveyancer. If the donor wants to protect a contribution, disclose this before choosing a mortgage rather than adding a private repayment or ownership agreement later. Do not assume a gift is automatically free of tax consequences.
Build it into the buying plan
Allow time for the donor’s documents and your conveyancer’s checks. Confirm when funds must be available and how they should be transferred. Independently verify the conveyancer’s bank details before paying money.
Budget for legal work, surveys, moving and applicable property tax as well as the deposit. Tell your adviser if the amount, donor or terms change before completion. MOVA can help you understand the mortgage requirements while your conveyancer handles the legal position.
Common questions
Before you take the next step.
Can any relative provide the gift?
The permitted donor relationships and conditions vary by lender. Tell MOVA who is helping before relying on a particular mortgage.
Can the donor ask for the money back later?
If repayment is expected, disclose it as a repayable arrangement. It should not be presented as a genuine non-repayable gift.
Is a signed letter enough?
Not always. The lender and conveyancer may also need identity, source-of-funds and transfer evidence.
Your next step
Talk through your plans with MOVA.
Tell us what you want to achieve and what you are unsure about. We will help you understand the next steps and the information needed for your circumstances.
The initial conversation is at no cost. Any applicable adviser fee will be explained and agreed before you proceed.
Related MOVA guides
Keep planning your next step.
General information, not a personal recommendation or legal or tax advice. Lender criteria and availability can change.
Your home or property may be repossessed if you do not keep up repayments on your mortgage or other debt secured on it.
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