Using a gifted deposit UK mortgage option can be a powerful way for foreign nationals on visas to step onto the property ladder sooner. Whether your family is supporting you from overseas or your partner is helping with the deposit, a gifted contribution can unlock homeownership opportunities that might otherwise feel out of reach.
In this guide, you’ll learn how gifted deposits work, who can give them, and exactly what UK mortgage lenders expect.
What Is a Gifted Deposit?
A gifted deposit is money given to you, usually by a family member, to help cover your house deposit. Unlike a loan, a gifted deposit doesn’t need to be repaid.
Lenders are open to this, provided it’s properly documented and meets their criteria.
Can I Use a Gifted Deposit for a UK Mortgage?
Yes. Many UK mortgage lenders accept gifted deposits. This is true even for foreign nationals and those on visas, provided:
- The deposit is a true gift (not a loan)
- The gift giver signs a formal letter confirming it
- The funds are traceable and legally sourced
Want to know how your visa status affects your deposit requirement? Read: How Much Deposit Do Visa Holders Need for a UK Mortgage?
How Soon Can I Apply for a UK Mortgage?
Some lenders are willing to consider your application after one UK payslip. Others prefer to see three to six months of employment.
To maximise your options, aim for:
- A stable job offer with a UK-registered employer
- A clean or limited UK credit file
A deposit of 10% or more (including from overseas sources), although it can be possible to use even just a 5% deposit!
Who Can Gift Me a Deposit?
Typically, gifted deposits are accepted from:
- Parents or step-parents
- Grandparents
- Siblings
- Spouses or long-term partners
Some lenders also allow gifts from friends or extended family, but this is less common and usually requires additional evidence, such as proof of relationship or a written explanation.
Can the Deposit Come from Overseas?
Yes, but lenders will need a full paper trail. You’ll need to provide:
- Bank statements from the sender
- Proof of the source of funds (e.g. savings, salary)
- Evidence of currency conversion
- Confirmation the funds have reached your UK bank account
This is especially important if you’re on a Skilled Worker, Spouse, or Graduate Visa.
Need help preparing your deposit trail? Download our Foreign National Mortgage Blueprint to avoid delays.
What Is a Gifted Deposit Letter?
Lenders will require a letter confirming the deposit is a gift. This should include:
- The name and relationship of the person gifting the money
- The amount gifted
- A statement that the funds are not repayable
Confirmation that the gift giver won’t have a legal claim to the property
How Much Can Be Gifted?
There’s no legal limit to how much can be gifted, but most lenders want you to contribute something yourself, especially if you’re a first-time buyer or have a limited UK credit history.
Some lenders accept 100% gifted deposits.
Does a Gifted Deposit Affect Affordability?
No, because it’s not treated as a liability. Unlike a loan, gifted funds don’t reduce your borrowing power.
Need help structuring your case? Read: Step-by-Step Mortgage Approval Process for Foreign Nationals
Final Thoughts: Support Can Strengthen Your Case
Using a gifted deposit doesn’t reduce your credibility, it can actually strengthen your mortgage application when handled correctly. With a clear paper trail and the right letter, you can use family support to boost your chances of buying a home sooner.
At First Time Finance, we help foreign nationals every week structure gifted deposits for mortgage approval.
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