Property Buying Guide
Building a Deposit: A 'gifted deposit'
There are circumstances when you may be given or 'gifted' a deposit to help you on your way. The gift may be from a parent, grandparent, or even one of the new house builders wanting to incentivise you into a new home (more likely to be an equity loan these days though rather than gifted deposit). Imagine someone paying your up front deposit for you. Wouldn't that make things much easier? The most likely donor of a gift for a deposit would be parents or grandparents.
There are tax consequences if the person who gave the money died within 7 years of the gift so they might want to take tax advice. There is a lot more about this in our ‘How Parents Can Help' section.
If you think parents or grandparents will help you with the deposit, consult a mortgage advisor about the best mrotgage for your circumstances of to help your parents with equity release or remortgaging.
Find out more about how to build a deposit - or even get away without needing one:
Savings l Extra work, selling things, cutting down on spending, cutting down on debt l A loan l Investing Abroad l Reducing the size of mortgage deposit needed l No Deposit Options