Parents helping with a house deposit: How it works

By:
 Lydia Slater

Avant Homes: Group Social Media and Marketing Executive

Updated:
 09 January 2026

A new year means new goals, and for many, their biggest goal heading into next year may be finally buying their first home. Whether it’s leaving rented accommodation behind, having more space, or simply starting fresh, the idea of a New Year, New Home is an exciting one.

But while motivation is high in January, saving for a house deposit can still be one of the biggest hurdles. That’s why more buyers are turning to family for support. Parents gifting money for a house deposit has become increasingly common, offering a practical way to turn homeownership goals into reality sooner.

If buying a home is on your list for the year ahead, here’s how parental support can help, and what you need to know before getting started.

Can family gift money for a house deposit?

Yes, family can gift money for a house deposit – and it’s one of the most popular ways for families to support first-time buyers.

A gifted deposit means the money is given with no expectation of repayment, allowing buyers to start the year with a clearer financial picture. Most mortgage lenders will ask the giver to sign a gifted deposit declaration, confirming the money is not a loan and that they won’t have any ownership claim on the property.

This reassurance gives lenders confidence and helps keep mortgage applications moving smoothly, which is ideal if you’re hoping to secure your new home early in the year.

While parents are the most common source of support, many buyers also ask whether extended family can gift money for a house deposit. In most cases, close relatives like grandparents can provide gifted funds if lenders are satisfied with the source of the money.

Can you borrow money from family for a house deposit?

Some buyers choose to borrow money from family for a house deposit instead, especially if parents can’t gift the funds outright. While this can still support your move, it’s important to understand how lenders view it.

Mortgage lenders will often treat borrowed deposits as a financial commitment, which may affect how much you can borrow. Most lenders will require formal written agreements, while others don’t allow borrowed deposits at all. 

Speaking to a mortgage adviser early can help you choose the best route and avoid any unexpected delays or complications.

Family With Senior Parents And Adult Offspring Walking And Talking In Garden Together

How much can parents gift for a house deposit?

There’s no legal limit on how much parents can gift towards a house deposit. That said, there are a few practical and tax-related considerations you should keep in mind.

Parents should be mindful of Inheritance Tax rules, as gifts may be considered part of their estate if they pass away within seven years. This would mean the home buyer might need to pay Inheritance Tax if the gifted deposit meets the threshold. Despite this, many families still choose this option as a long-term investment in their child’s future.

From a buyer’s perspective, a larger deposit can also unlock better mortgage rates, making monthly repayments more manageable from day one.

Parents helping with house deposit: what lenders look for

When parents are helping with a house deposit, lenders will usually carry out checks on where the money has come from. This is known as providing Proof of Funds and is a standard part of the buying process.

Lenders will usually ask for:

• Proof of the funds

• A gifted deposit letter

• Proof of ID from the giver

• Confirmation that parents will have no stake in the property and won’t expect repayment

It’s best to have these documents ready early to help keep everything on track, especially if you’re hoping to move into your new home quickly.

family, generation and technology concept - happy smiling senior mother and adult son with tablet computer at home

The Bank of Mum and Dad scheme

At Avant Homes, we recognise that a house deposit gift from parents can be invaluable. That’s why we offer a dedicated Bank of Mum and Dad scheme designed to make buying your new home more accessible. 

When you buy an eligible Avant new build home and a relative contributes 5% or more towards the purchase price, we’ll give £2,000 back to say thank you.

Starting the year in a home of your own

If buying your first home is one of your goals for the year ahead, support from family could help you take that step sooner than you think. With careful planning and the right guidance, a New Year move doesn’t have to feel out of reach.

By combining family support with Avant Homes’ range of modern, energy-efficient properties and flexible buying schemes, you can focus on what really matters: starting the year confident and ready for the next chapter!

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