Yes, many lenders accept gifted deposits from close family members. The lender and solicitor will normally want evidence of the source of funds and confirmation of whether the money is a genuine gift rather than a repayable loan.
When family helps with a mortgage
How family-assisted mortgages work
There is no single product called a family-assisted mortgage. The phrase covers several ways relatives can help someone buy a home, including gifted deposits, guarantor-style arrangements and joint borrower sole proprietor mortgages.
The structure matters because the legal and financial implications are different. A genuine gift is different from a loan that must be repaid, and becoming jointly responsible for a mortgage is very different from simply contributing to the deposit.
Lenders will usually want the arrangement to be transparent. They may ask where deposit money came from, whether anyone expects repayment, who will own the property and which people are responsible for the mortgage debt.
There are several forms of family help
A gifted deposit, guarantor arrangement and joint borrower sole proprietor mortgage solve different problems and carry different obligations.
The arrangement must be declared
Lenders and solicitors need to understand where funds came from and whether relatives have any repayment expectation or legal interest.
Family members need to understand the risk
Some structures can make relatives responsible for mortgage payments or expose savings or property to risk, so independent legal or financial advice may be appropriate.
A guarantor-style mortgage uses support from another person to strengthen the application. The exact structure varies by lender and may involve responsibility for payments, savings used as security or another property supporting the borrowing.
A joint borrower sole proprietor arrangement allows more than one person to be responsible for the mortgage while only one person, or fewer of the borrowers, owns the property. This can sometimes help affordability but creates significant obligations for the supporting borrower.
A repayable family loan may be treated differently from a gift and can affect affordability or lender acceptance. It should be disclosed clearly rather than presented as gifted money.
Not always. Whether a family member is a borrower, owner, guarantor or simply providing a gift depends on the structure being used.
Some arrangements can bring another person’s income or financial support into the application, but the lender will assess the specific structure and the obligations of everyone involved.
Usually, yes. Lenders and conveyancers commonly require evidence of the funds and a declaration explaining the gift and whether the donor expects any repayment or ownership interest.
They should understand whether they are giving away money permanently, taking on mortgage liability, placing assets at risk or affecting their own future borrowing. The implications depend on the arrangement.
Your next step
Work out the right way for family to help
A mortgage specialist can look at the support available, your affordability and the proposed ownership structure before discussing relevant lender routes.