Gifted deposit letter template

Last reviewed: 27 July 2026

A gifted deposit letter is a signed declaration from the donor confirming the money is an unconditional gift, not a loan, that no repayment is expected, and that the donor will have no interest or share in the property. It includes the donor's details, the amount, the property address and the relationship to the buyer. Many lenders have their own form, so check before using any template.

Check this first

Many lenders insist on their own gifted deposit form or specific wording, and some conveyancers have a standard letter too. Ask your broker or solicitor before using any generic template, including this one. This template is general information, not legal advice: have the solicitor confirm the final wording.

The template

[Donor's full name]
[Donor's address]
[Date]

To: [Lender name] and [Solicitor / conveyancer firm name]

Re: Gifted deposit for the purchase of [full property address]
Applicant(s): [Full name(s) of the buyer(s)]

I, [donor's full name], of [donor's address], date of birth [DD/MM/YYYY], confirm the following:

I am giving [buyer's full name(s)] the sum of £[amount] ([amount in words]) to be used towards the deposit for the purchase of the property at [full property address].
This money is an unconditional, non-refundable gift. It is not a loan. There is no expectation or requirement that it will ever be repaid, in money or in any other form.
I will have no interest, share or rights in the property, now or in the future, and I will not live in the property.
My relationship to the buyer(s) is: [e.g. parent / grandparent].
The gift comes from my own funds, held at [bank/building society name], and I can provide statements showing the source of these funds for anti-money-laundering checks.
Making this gift does not leave me unable to meet my own debts and financial commitments, and I am not bankrupt, subject to insolvency proceedings, or aware of any claims against me.

Signed: ______________________
Full name: [Donor's full name]
Date: [DD/MM/YYYY]

Witness (if required by the lender or solicitor):
Signed: ______________________
Full name: ______________________
Address: ______________________
Date: [DD/MM/YYYY]

If the donor will live in the property, delete or amend clause 3 and tell the lender: a resident donor changes their requirements.

Why lenders and solicitors want each clause

Gift, not loan. A loan is a financial commitment that reduces affordability, so lenders need certainty there is no repayment in any form.
No interest in the property. Someone with a stake but no name on the mortgage complicates the lender's security if the home is ever repossessed.
Donor details and relationship. Most lenders prefer gifts from close family; unusual sources get more scrutiny.
Source of funds. Anti-money-laundering rules require the solicitor to trace where the money actually came from, so the donor should expect to show ID and statements.
Solvency. Solicitors commonly ask the donor to confirm the gift does not leave them unable to pay their own debts, protecting the sale from being unwound in an insolvency.

Gift versus loan, and tax

If any repayment is expected, it is a loan and must be declared as one: see the fuller guide to gifted deposits for how lenders treat each, and the bank of mum and dad for the wider picture of family help. Large gifts can also have inheritance-tax implications for the donor's estate (the seven-year rule): that is a tax question for GOV.UK's inheritance tax guidance or a tax adviser, not a mortgage one. This page is information, not legal or tax advice, and we introduce you to a regulated mortgage broker who can advise on the mortgage itself.

Common questions

Who writes the gifted deposit letter?

The donor (the person giving the money) signs it, and if a couple are giving jointly, most lenders want both to sign or a letter from each. In practice the buyer, broker or solicitor often prepares the wording and the donor checks and signs it.

Do lenders accept any gifted deposit letter?

Not always. Many lenders have their own gifted deposit form or required wording, and some solicitors do too. Always ask the broker or solicitor first: a generic letter is a fallback for when no set form exists, not a way around the lender's own paperwork.

What if the money is really a loan, not a gift?

Say so. A family loan must be declared and is treated differently: it counts in affordability and can reduce how much you can borrow. Describing a loan as a gift on a signed declaration is mortgage fraud. If repayment is expected in any form, it is a loan.

Does the donor need to prove where the money came from?

Yes. Anti-money-laundering rules mean the solicitor will usually ask the donor for photo ID, proof of address and bank statements showing the funds. Warning the donor about this early avoids an awkward delay at the conveyancing stage.

Adam Parker

Founder, MortgageExplained

Adam spent nearly a decade as a mortgage adviser at Just Mortgages, with further experience in commercial finance. He is CeMAP and CF qualified. He built MortgageExplained to do one thing well: explain mortgages in plain English, then introduce you to a regulated broker when you are ready. Every page is written and reviewed by Adam.