A gifted deposit is a cash gift that you use to pay for some or all of your mortgage deposit. Gifted deposits are usually given by relatives however each lender has a list of who they will accept a gifted deposit from, such as from your parents, grandparents, brother, sister etc. Other lenders may not accept gifted deposits at all so it is important to look into this beforehand.
Gifted deposits cannot be a loan and there must be no agreement to pay the money back. If the money is to be repaid, this will be classed as a loan and is a different scenario. Lenders will require the gift giver to state in writing that they are giving you the money as a gift and do not expect any money back in return. All gifted deposits will need to be declared to the lender and as well as the gifted deposit letter they may ask for ID from the person gifting and proof of the funds.
If you have a gifted deposit and would like some help from the professionals please give us a call on 01623 622611 or click here for a free Initial Consultation now!