For all property purchases in the UK whether that be residentially or Buy to Let, you must provide a 
deposit. This deposit is a % of the purchase price. Upon submitting a mortgage application you must be 
able to evidence your deposit and deposit can come from various places in various forms. Here is a list 
of deposit types that most lenders accept: 
Personal Savings 
This could be money you have saved into a ‘Help to Buy ISA’ or a Lifetime ISA’ (LISA). Most lenders 
require a monthly savings statement to prove you have this in your account. To prove this you must 
provide a statement that shows your name and address on to show the funds and the account belong to 
TOP TIP - Ensure your address is accurate on your bank statements, so if you have moved house in the 
past make sure you have updated your address with your bank. 
Family Gift 
A family member can gift you the money for your deposit for your purchase. For a deposit to be classed 
as a gift it must be money given to you by a family member who does not want the money back and who 
will not live in the property or have any financial interest in the property. Depending on the lender and the 
size of the gift, that specific lender may require the donor of the gift to complete a gifted deposit form and 
a bank statement to evidence this money. Like above it must show their name and address on to prove it 
belongs to them. 
When selling a property you own to move into another property you can use the equity within that 
property to be used as a deposit. This can be proven with a memorandum of sale to show the sale prove 
of your property. This equity would then be transferred over to the new property by your solicitor. You can 
also use equity released via a remortgage as a deposit with a mortgage offer document provided to the 
Forces Help to Buy scheme 
Introduced in 2014 all members of the armed forces can take advantage of the forces help to buy up 
scheme. Members of the armed forces can lend up to 50% of their annual salary up to a limit of £25,000 
to be used as a deposit. This amount will then be paid back to the forces each month out of the members 
gross pay over a period of 10 years. 
If an applicant wishes to use money they have received via inheritance they can provide a letter form the 
solicitor executing the will and estate of the deceased. A bank statement showing the receipt of those 
funds should be provided to the lender also to support this. 
Builder incentive 
This applies to new build properties. A builder can offer an incentive of a deposit contribution up to 5% of 
the property value to help buyers increase their deposit to qualify for a mortgage. The solicitor acting on 
behalf of the applicant should provide a letter outlining this which is to be forwarded to the lender. 
As the deposit types accepted by lenders varies from lender to lender it is always best to work with an 
independent mortgage adviser to find the best lender for you based on your deposit and your unique 
Share this post:

Leave a comment: 

Our site uses cookies. For more information, see our cookie policy. Accept cookies and close
Reject cookies Manage settings