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Whoever gifts the money will not have any interest in the property and nor will they have any right to get their money back.  

Who can gift a deposit? 
 

This person usually needs to be a family member but can be a friend, though this is less favourable for lenders. 
 
Each lender will have its own regulations and clauses and each application is different but, as a general rule, there are a number of set parameters that the lender will want to meet. 
 
Proof of gift 

 
It’s likely that the lender will want a written declaration that they have gifted you the money and have no interest in getting in the property or getting the sum that they’ve gifted paid back to them. 
 
Conveyancing 
 
Solicitors will also carry out their own checks when there is a gifted deposit, as they have to show due diligence and vigilance when it comes to money laundering. 
 
They’ll likely need details of the person who is gifting the deposit, identification and evidence of where the deposit is coming from.  
 
If it’s coming from savings in the gift-giver’s bank account, then they will probably need to provide their bank account statement, showing the money in there, whilst also stating where the funds have come from.  

 
Do I have any other options? 
 
You could consider a guarantor mortgage, which allows a family member to guarantee that you’d pay your mortgage. 
 
This means that they would be responsible if you were to fail to do so.  

For further information on how you could use a guarantor mortgage or what to do when you have a gifted deposit, speak to one of our expert advisers who will be able to help you with the next steps.