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The Popularity of Buying a Property with a Gifted Deposit

A gifted deposit is a sum of money given to a first time buyer in Hull by a family member or close friend. As the name suggests, this is not a loan but a gift, given with the intent that it does not need to be repaid. Nowadays, gifted deposits are a beneficial way for those struggling to save up for a 5% deposit to get on the property ladder.

How Does A Gifted Deposit Work?

A gifted deposit involves a family member or close friend providing the funds needed for a deposit on a property purchase. Here’s how the process typically works:

If you have any questions, we are more than happy to assist you. For a more in-depth discussion regarding gifted deposit mortgages, it is advisable to speak with a mortgage broker in Hull. We can help ensure that all parties involved fully understand their responsibilities and obligations related to gifted deposits.

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What is a gifted deposit letter?

Mortgage lenders will want an explanation of where the money is coming from. A gifted deposit letter will contain a full list of key details and declarations that prove the overall intention and source of funds are legitimate. The ‘key details’ will include things like:

Are there limits on how much a gifted deposit can amount?

There is no limit to the overall lump sum you can give or use as a gifted deposit.

Can multiple people give gifted deposits?

Yes, multiple people can gift deposits. It’s not uncommon at all for families to get together and pool their money towards funding a property for someone they have in common. Each donor requires a deposit letter as outlined above, as well as their bank statements in many cases.

Date Last Edited: 06/18/2024

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