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Being in the fortunate position of receiving a gifted deposit can make a huge difference when buying a home. But many buyers are surprised to discover that some mortgage lenders will only accept gifted deposits from immediate family members.
The good news? All is not lost. There are lenders who will consider deposits from friends, cousins, employers, or more distant relatives — you just need to know where to look.
In this guide, we’ll cover why some lenders restrict non-family gifts, who does accept them, and what you should keep in mind before applying.
Why Don’t All Lenders Accept Non-Family Gifted Deposits?
Lenders are cautious about the source of funds because of risks such as:
- Money laundering concerns – They want to ensure the money has a legitimate and transparent origin.
- Potential for repayment pressure – If the gift is from a non-family member, lenders may worry it’s really a “loan in disguise” with an expectation to pay it back.
- Perceived stability – Gifts from parents or grandparents are seen as more straightforward and reliable than from friends or extended connections.
Because of these concerns, some lenders set strict policies, allowing gifts only from close blood relatives (parents, siblings, grandparents, children).
Which Lenders Consider Non-Family Gifted Deposits?
The answer depends on whether you’re applying for a residential mortgage or a buy to let mortgage.
| Acceptable | Not Acceptable |
|---|---|
| Kent Reliance, Dudley BS, Barclays, Melton BS, NatWest, Vernon BS, Market Harborough BS, West One Loans, Hinckley & Rugby BS, Mansfield BS, Virgin, Loughborough BS, Atom Bank, Earl Shilton BS, United Trust Bank, Norton Home Loans, Nationwide, Livemore Capital, Santander, Cumberland BS, Ecology BS, Foundation HL, Chorley BS, Cambridge BS, Vida HL | Saffron, Scottish BS, Coventry BS, Clydesdale, Kensington, Newcastle Intermediaries, Gatehouse, The Mortgage Lender, Hanley Economic BS, HSBC, Darlington, MPowered, Harpenden BS, April Mortgages, Bank of Ireland, Gen H, Together, Progressive BS, Leeds BS, Accord, Pepper Money, West Brom, Newbury BS, Family BS, Bath BS, Buckinghamshire BS, Hodge, Beverley BS, AIB Intermediaries, Monmouthshire BS, Suffolk BS, Bluestone, Metro Bank, Penrith BS, Furness BS, Perenna, Skipton BS, Principality BS, Bespoke BOI, Central Trust, Halifax, Co-operative, Marsden BS, TSB, Aldermore, Teachers BS, Swansea BS, LendInvest, Stafford BS, Leek BS, Tandem Bank, Precise Mortgages |
Buy to Let Lenders – Gifted Deposits from Non-Family Members
When it comes to buy to let mortgages, the rules around gifted deposits are very different from residential. While some lenders are open to deposits from non-family members such as friends, business partners, or employers, many take a stricter view and will only accept gifts from close relatives (or reject gifted deposits altogether).
Here’s a quick overview of which buy to let lenders accept gifted deposits from non-family members and which do not:
| Acceptable | Not Acceptable |
|---|---|
| Santander, NatWest, Hampshire Trust Bank, Tipton BS, Mercantile Trust, Virgin, Zephyr Homeloans, The Mortgage Works, Quantum Mortgages, Dudley BS, Swansea BS, Modamortgages, Market Harborough BS, Hinckley & Rugby BS, Harpenden BS, Chorley BS, Melton BS, Market Financial Solutions, Together, Mansfield BS, Furness BS, Molo Finance | Fleet Mortgages, The Co-operative Intermediaries, Octopus Real Estate, Newbury BS, Central Trust, Loughborough BS, LendInvest, Buckinghamshire BS, Nottingham BS, Teachers BS, Landbay, Keystone Property Finance, BM Solutions, Precise Mortgages, Stafford BS, Newcastle Intermediaries, Castle Trust, InterBay, Foundation HL, Kensington, Skipton International, HSBC, Vernon BS, Aldermore, Pepper Money, The Mortgage Lender, Coventry BS, Suffolk BS, TSB, United Trust Bank, West One Loans, Paragon Mortgages, Monmouthshire BS, Metro Bank, Bath BS, Darlington, CHL Mortgages, Beverley BS, Clydesdale Bank, Cambridge BS, Vida HL, Accord, Saffron, Gatehouse Bank, Lendco, Bespoke BOI, State Bank of India, Barclays, Kent Reliance, Family BS, Bank of Ireland, Skipton BS, Principality BS, Hanley Economic BS, Shawbrook, Leeds BS, Leek BS, Penrith BS |
Does It Matter If the Gifted Deposit Is UK-Based?
If the deposit is coming from within the UK, the process is straightforward. If it’s from overseas, lenders will usually ask for 6 months’ worth of donor bank statements, fully translated into English, along with a clear audit trail of where the funds came from.
What Proof Do You Need for a Gifted Deposit?
For UK-based donors, you’ll normally need:
- A Gifted Deposit Letter (confirming it’s a gift, not a loan)
- Donor bank statements
- Photo ID and proof of address
For non-UK donors, you may also need translations of bank statements and additional checks to meet anti-money laundering rules.
When Do the Funds Need to Be Transferred?
Most lenders are happy for the funds to be transferred later in the process (closer to completion). However, some insist the money is transferred before the application is submitted — though this is less common. Always check the lender’s requirements in advance.
Can a Gifted Deposit Be Repayable?
In most cases, the answer is no. If the money is expected to be repaid, lenders will treat it as a loan, not a gift. That can affect affordability, because the repayments would need to be factored into your outgoings — and many lenders simply won’t allow it.
There are some exceptions:
- A small number of lenders may accept a repayable gift if the repayment is deferred until the sale of the property.
- In rarer cases, if regular monthly repayments are agreed, lenders may still consider the application — but those repayments will reduce the amount you can borrow.
👉 As a rule of thumb, lenders prefer deposits that are non-repayable. If there’s any expectation of repayment, it’s crucial to disclose it up front to avoid problems later in the process.
Why Use a Broker for Gifted Deposits?
Gifted deposit cases can be more complex, especially if the donor isn’t an immediate family member or the funds are from overseas. A whole-of-market broker like Strive can:
- Review the case as a whole (affordability, deposit source, lender policy, interest rates)
- Match you to lenders that accept your situation
- Save you time, money, and stress by avoiding declined applications
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.
