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A buy to let investment can be a strong step toward long-term financial growth. The biggest challenge for many landlords is pulling together the deposit. If a family member wants to help, you may be considering using a gifted deposit for a buy to let mortgage.
Many assume gifted deposits only apply to residential homes, not rentals. The reality is that you do have options.
At Strive, we specialise in buy to let mortgages and support landlords at every stage of their property journey.
Can You Use a Gifted Deposit for a Buy to Let Mortgage?
Yes. Many buy to let lenders accept gifted deposits, especially from close relatives such as parents or grandparents. Lenders simply want confidence that the funds are a genuine gift with no strings attached.
Gifts from friends, business partners, or extended family can still be accepted, although fewer lenders will consider them. The concern is usually that the donor may expect repayment or seek a financial interest in the property.
If you’re buying through a limited company, criteria can differ. Some lenders only allow deposits from directors or shareholders, while others remain open to family gifts with proper documentation.
Gifted deposits can also be useful for first-time buyer landlords, helping you step into property investment sooner. Learn more about first-time buyer buy to let mortgages and how lenders view them.
What Makes a Gift Acceptable to Buy to Let Lenders?
Lenders look for reassurance on three main points when assessing gifted deposits:
• The gift does not need to be repaid
• The donor will have no claim or stake in the property
• The source of funds can be clearly evidenced
Who the gift comes from is also key. Most buy to let lenders only accept gifts from immediate family members such as parents, grandparents, siblings, or children.
Some may consider gifts from extended family, but fewer accept them. Gifts from non-family members such as friends or business partners are accepted by only a handful of specialist lenders.
If you’re buying through a limited company, the rules can differ. Some lenders only allow deposits from directors or shareholders, while others remain open to family gifts, provided the donor is clearly identified and the funds are fully verified.
There are also different ways the deposit can be provided. Cash gifts are the simplest, but if you’re purchasing a property below market value from a family member and the discount forms the deposit, that’s considered gifted equity. Not all lenders accept gifted equity, so checking criteria early is crucial.
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Can a Loan Be Used Instead of a Gift?
Loan-based deposits are far more difficult to get approved. Personal loans add debt and ongoing commitments, which most lenders will not accept.
A family loan may be considered by a very limited number of lenders if repayment only occurs when the property is sold and there are no monthly repayments affecting affordability.
The more a contribution looks like borrowing, the less lender appetite there is.
Gifted Deposits from Overseas for Buy to Let Mortgages
It’s possible to use an overseas gifted deposit, although more checks will apply. Expect enhanced money-laundering due diligence, translated documents if needed, and a longer history of bank statements.
Gifts from donors outside Europe may require even more evidence, so allow additional time in the process.
What Proof Do You Need for a Gifted Deposit?
Document requirements are usually straightforward when everything is transparent and prepared in advance. You can expect:
• A gifted deposit letter confirming the relationship, amount, and that the gift is non-repayable
• Identification and address documents for the donor
• Bank statements showing where the funds originated and how they are transferred
• Additional checks by solicitors during conveyancing
Good preparation avoids delays when deadlines matter.
Which Buy to Let Lenders Accept Gifts from Non-Family Members?
Most lenders are comfortable with gifted deposits from direct family, but far fewer will consider gifts from non-family members such as friends, business partners, or unrelated investors.
Below is a filtered overview of which portfolio buy to let lenders currently accept — or do not accept — gifted deposits from non-family members.
Acceptable Lenders (Non-Family Gifts Considered)
| Acceptable Lenders | Not Acceptable Lenders |
|---|---|
| Harpenden Building Society, Hinckley & Rugby Building Society, Mercantile Trust, Chorley Building Society, Market Harborough Building Society, Santander, Virgin, Market Financial Solutions, NatWest, Mansfield Building Society, Dudley Building Society, Molo Finance, Zephyr Homeloans, Quantum Mortgages, Hampshire Trust Bank, The Mortgage Works, Swansea Building Society, ModaMortgages, Melton Building Society, Furness Building Society, Tipton Building Society, Together | Metro Bank, Vernon Building Society, Skipton Building Society, Leeds Building Society, Vida Homeloans, BM Solutions, Paragon Mortgages, Aldermore, Kent Reliance, Nottingham Building Society, Kensington Mortgages, Gatehouse Bank, Fleet Mortgages, Landbay, Pepper Money, Coventry Building Society, Precise Mortgages, Barclays, Accord Mortgages, Clydesdale Bank, Family Building Society, The Mortgage Lender, Newbury Building Society, Shawbrook Bank |
How Strive Supports Landlords Using Gifted Deposits
A gifted deposit is only one part of a successful buy to let application. Rental stress tests, personal or limited company strategy, property type, and your wider financial profile all influence the lenders available to you.
At Strive, we match landlords with lenders who understand their circumstances — including more complex gifted deposit scenarios such as gifted equity or non-family donors.
We handle the details, ensure the correct paperwork is in place, and keep your mortgage progressing smoothly from application through to completion.
If you’re planning to invest in a rental property using a gifted deposit and want expert guidance from start to finish, Strive will help you take the next step with confidence and clarity.
Yes. It depends on the lender, where the gift has come from, and the relationship with the donor. Some lenders are very flexible, while others will only accept gifted deposits from specific sources. The right lender match is key.
Not necessarily. Acceptance comes down to lender policy, the donor’s location, and whether the funds can be clearly verified. You may be asked for donor bank statements, photo ID, address proof, and evidence showing how the funds were built up. As long as the gift can be properly documented, it should not prevent approval with a suitable lender.
Jamie Elvin
Jamie is an expert in all things mortgages, and our most experienced broker. Connect with Jamie and get started to see how Strive Mortgages can help you.
