Overview
A gifted deposit letter explains why money from someone else is available for your property purchase and what that person expects in return. The lender needs to understand whether it is a genuine gift, another repayment commitment or an arrangement affecting ownership.
The letter is only one part of the evidence. Your conveyancer may also need to establish where the donor's money came from and how it reached the purchase funds.
Quick Answer (Read This First)
Identify the donor and buyer, their relationship, the amount, the property and the true conditions of the gift. Use the lender's own form where required. A standard unconditional-gift declaration is inappropriate if the donor expects repayment or a share of the property.
Requirements differ. Halifax describes the information its gifted-deposit letter should contain, while Nationwide uses a specific form for gifts of £10,000 or more under its published process. Smaller gifts still need to be disclosed when required. Halifax: gifted deposits; Nationwide: gifted deposits.
Ask for the Required Form First
Before drafting your own letter, ask the lender or broker for the current gift requirements. Also ask the conveyancer what evidence it needs and where the donor should send it securely.
Those checks answer different questions. The lender assesses whether the proposed deposit arrangement fits its lending policy. The conveyancer also checks the funds and the legal position for the transaction.
A downloaded template cannot guarantee acceptance by every lender. If the lender supplies a declaration, complete it accurately rather than substituting a shorter letter that leaves out its required questions.
Include the Details That Identify the Arrangement
The following is a preparation checklist for an ordinary unconditional cash gift. The lender's own instructions determine the final document.
| Detail | Why it matters |
|---|---|
| Donor's full name and address | Identifies the person providing the funds |
| Buyer's full name and relationship to the donor | Connects the gift to the mortgage application |
| Gift amount and property address | Identifies the money and intended purchase |
| Source of the funds | Helps explain how the donor obtained the money |
| Repayment and ownership conditions | Shows whether the arrangement creates other obligations or interests |
| Signature and date | Records who made the declaration and when |
Some forms ask for additional information such as the donor's date of birth, nationality or whether they will live in the property. Nationwide's published legal forms provide a concrete example of lender-specific questions. Nationwide: forms for conveyancers.
A Starting Point for a Simple Gift
The wording below is an original drafting example for discussion with your lender and conveyancer. Use it only where every statement is true and the lender permits a letter instead of its own form.
I, DONOR FULL NAME, of DONOR ADDRESS, intend to give £AMOUNT to BUYER FULL NAME, who is my RELATIONSHIP, towards the purchase of PROPERTY ADDRESS.
The funds come from DESCRIPTION OF SOURCE. This is an unconditional gift. I do not require repayment or interest, and I will not acquire an ownership interest in the property as a result of this gift.
Donor signature: SIGNATURE. Date: DATE.
Add further declarations only as instructed and only if accurate. If more than one person owns the gifted money, ask who needs to sign. Do not assume one family member can declare another person's funds away.
A Gift With Conditions Needs a Different Conversation
If the donor wants the money back when the house is sold, expects monthly repayments or wants a registered interest, tell the broker and conveyancer before signing anything. Calling it a gift does not remove those conditions.
Nationwide's policy illustrates why blanket statements are unhelpful: it describes particular family arrangements involving a second charge or declaration of trust that require specific handling. That does not mean every lender accepts them, or that an unconditional-gift letter is appropriate.
For example, a parent providing £25,000 “until you can afford to repay it” has described an expected repayment, even without a deadline or interest. The application should reflect that understanding. If the family instead decides to make a genuine gift, everyone needs to understand the change.
Prepare the Money Trail Early
Ask what statements and supporting documents are required before moving the funds. Savings accumulated from earnings, an inheritance and sale proceeds can require different evidence.
Nationwide's application-proofs guide sets out evidence requirements for its mortgage process. Your conveyancer may ask for additional documents, so a lender accepting the letter does not necessarily finish the checks. Nationwide: application proofs.
Where possible, keep the transfer route straightforward and retain statements showing the movement. If the amount, donor or purchase property changes, tell the professionals handling the application and ask whether the declaration needs updating.
Frequently Asked Questions
Read the mortgage process timeline, our guide to application delays, and the mortgage category. This is general information, not a legal document tailored to your purchase. Sources were checked on 9 September 2026.
