For a majority of first-time buyers, the dream of homeownership comes true only when they receive a gifted deposit. Even if the gifted deposit does not cover complete cost, it is a great help in making good for the amount that might be left. This takes a huge load from your shoulders. 

However, applying for gifted deposit mortgages is more difficult than it seems. Gifted mortgage is more than a simple commitment, and you must take advice from some expert before moving ahead. Mortgage Experts Online is UK based accredited online agency, which provides you expert advice from the comfort and security of your home. 

If you are looking for some experts to help you with your mortgage issues, you must reach out to them and avail the benefit of their services for your home. 

What is a gifted mortgage?

A gifted mortgage refers to the money which has been given to you from any of your family members or a close relative. This money is not in the form of a load, thus there is no commitment to repay the amount and it is transferred so that the benefactor may pay, in entirety or part, the deposit which is needed to buy a home. 

Gifted mortgages act as a boon to first-time buyers. Since raising the compete deposit at once can be a herculean task, gifted mortgages reduce the financial barrier from owning your house. They also open up more options for you. Since your financial liability has been somewhat reduced, you would not be required to adjust from anything lower than what you dreamt. 

How to prove a gifted deposit?

Getting a gifted deposit mortgage is easy said than done. To procure a gifted deposit mortgage, the person who is passing on the gift must sign an undertaking called a “Gifted deposit letter”. It is different from a simple oath or affirmation and is much more organised than that.

It has following information:

1- Name of the person who is receiving the gift.

2- The total amount of the loan.

3- That the amount is being gifted free from any expectations of being repaid. 

4- That the driving factor behind the gift is love and not any commercial interest. 

5- That the transfer of the gift does not make the transferor a stakeholder in the property.

6- That the security of the mortgage would stay unaffected by such transfer.

7- That the person who transfers the gift is financially solvent. 

What all do you need?

1- Gifted deposit letter.

2- Proof of available funds.

3- ID proof.

Who can make a gifted deposit?

Usually, it is not a cause of concern whenever close family members like parents or grandparents make a gifted deposit but it is usually concerning for the lenders when distant family members or friends come in the picture as transferors of the gift. 


Even though gifted deposits are a great help to first-time buyers, you must be cautious while moving ahead. For instance, you must get the gifted deposit letter checked from the conveyancing solicitor. This helps you to prevent any headache in future.