I’m Charles Calvert, a mortgage broker at Easy Mortgages. This is general information, not personal advice. Always check the figures against your own situation before you decide anything.
Parents and grandparents often help Hampshire first-time buyers with a gifted deposit. Lenders are generally comfortable with genuine gifts — as long as the paperwork is clear and the money can be traced. Done late or vaguely, gifts are one of the most common causes of conveyancing delay.
Bank Rate has been rising through 2022 and new fixed deals have been adjusting with it, so it pays to sense-check affordability carefully before you offer.
Gift versus loan
A gift means the money is not expected back and the donor has no claim on the property. A loaned deposit is treated differently: many high-street lenders will not accept it, or they will deduct the loan from how much you can borrow. Be honest about which it is. Calling a loan a gift to “make the form easier” creates problems later when bank statements tell a different story.
What lenders usually need
Expect a gift letter confirming the amount, the relationship, that it is a non-repayable gift, and that the donor has no interest in the property. Lenders also run source-of-funds and anti-money-laundering checks, so donors may need to show bank statements or evidence of where the money came from — savings, a pension lump sum, sale of investments, and so on.
If several family members each gift a portion, each donor usually needs their own letter and trail. Mixing funds through multiple accounts without a clear path is what slows underwriters down.
Common pitfalls I see
- Money arriving in bits from several accounts without a clear trail.
- A “gift” that is really a family loan with repayments planned quietly.
- Donor wanting to stay on the title or take a charge without planning that structure properly.
- Leaving the gift letter until days before exchange.
- Gift funds sitting in an account that also has unexplained large deposits.
Why gifts matter more when prices and rates are both in focus
When property prices in Fareham, Portsmouth and Southampton feel high relative to early-career salaries, family help often bridges the gap into a stronger LTV band. A move from 95% to 90% or 85% LTV can improve rate choice as well as monthly cost. Just make sure the gift is documented before you rely on it in an offer.
Fareham, Portsmouth and Southampton buyers
Gifted deposits are common locally. Used well, they strengthen the application. Used late or without paperwork, they stall the chain. If you are buying with a partner and only one set of parents is gifting, say so early — lenders still need the full picture.
How Easy Mortgages can help
Once you are in process with me, I can supply a gift letter template that matches what lenders typically expect. That does not replace solicitor advice on ownership or tax, but it gets the mortgage file moving cleanly.
Your first chat comes with no fee and no obligation. If we arrange a purchase mortgage for you, my fee is £495, payable once you receive your full mortgage offer. Full details sit on the mortgages fees section.
Timing the gift into your account
Lenders like to see gift funds land in your account with a clear trail before they issue a full offer — and often before they are fully comfortable at application. Leaving the transfer until the week of exchange is a common own-goal. Plan the movement of money once the gift letter is signed, and keep screenshots or PDF statements that show the donor’s account, the transfer and your receipt.
If the donor is selling investments or releasing pension cash first, build that timeline into your offer strategy. Estate agents in Fareham and Portsmouth will ask how solid your deposit is; “family are sorting it” without dates is weaker than a documented plan.
International gifts
Gifts from overseas relatives are possible but usually need extra evidence of the source of funds and the route the money took into the UK. Currency conversion records and bank letters help. Tell your broker early if any part of the deposit is coming from abroad so the right lender is chosen.
Next step
If family are ready to help and you want to know how lenders will treat the gift for a Hampshire purchase, send an enquiry and we will talk through the steps.
If you would like to talk this through for your own numbers, you can get in touch here or email contact@easy-mortgages.co.uk. I am based in Fareham and help clients across Hampshire.