The Bank Of Mum And Dad

Gifting a deposit is one of the most common ways parents help their child buy a home. With that though come a set of rules that you will need to adhere to:

1. The mortgage lender will require proof that the money came from parent (or grandparent or generous friend!) and should be evidenced by way of a letter confirming such – don’t worry, we can assist with templates for this.
2. The lender will request the last three months bank statements for the account that the gift came from – as evidence for their money-laundering checks.
3. Whoever is gifting the money will need to confirm that it won’t need to be paid back, as the lender will want confirmation of such in writing.
4. The person gifting the money will be required to sign a declaration that they have no legal interest in the property being purchased.

Other options

Many parents don’t have enough savings to gift the money for a deposit. Where this is the case there are several options that can be considered, including:

• Guarantor mortgages
• Joint mortgages
• Remortgaging
• Joint Borrower Sole Proprietor (JBSP) mortgages

Finally, anyone gifting money should always seek financial advice on the implications of doing so, especially from a tax and/or inheritance tax perspective.