Gifted deposit letter – template
Lenders and solicitors usually ask for a signed letter from the person giving the deposit. Fill in the details and download a PDF for them to sign.
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Gifted deposit letter – what you need to know
When part of a house deposit comes from a parent, relative or friend, the mortgage lender and the buyer’s solicitor need to know that it is a genuine gift. Otherwise they treat it as a loan that the buyer has to repay, which affects affordability.
What the letter must say
- who is giving the money and how they are related to the buyer
- the exact amount and the property it is for
- that the money is a gift, not a loan, and will not be repaid
- that the giver will have no share in, or claim on, the property
- where the money comes from – the solicitor must check the source under anti-money-laundering rules
Checks the solicitor will do
Expect to provide photo ID and proof of address for the giver, plus bank statements showing the money in their account and the transfer. Some lenders have their own gift form – if so, use theirs.
Inheritance tax
A gift like this is usually a “potentially exempt transfer”: no inheritance tax is due if the giver lives for seven years after making it. Each person can also give away £3,000 a year free of inheritance tax.
Frequently asked questions
Who needs to sign a gifted deposit letter?
The person or people giving the money. The buyer does not sign it.
Can a friend give a gifted deposit?
Many lenders only accept gifts from family members. Check your lender’s rules before relying on a gift from a friend.
Does the gift have to be in my account before I apply?
Lenders and solicitors want to see where it comes from and when it is transferred. Follow your solicitor’s instructions on timing.
This template is for general information and is not legal advice. It reflects the law of England and Wales as at October 2026. Check that it fits your situation before signing and take legal advice in unusual cases.