Helping your kids fly the nest (and get on the first rung of the property ladder) with a gift that keeps on giving!

The rewards

For parents, there’s nothing more rewarding than watching your children spread their wings. But let’s be honest - flying the nest is a lot harder these days. Sky high rents, rising property prices, and tight lending rules have made it tough for first time buyers to get a foot on the ladder.

If you're a parent (or even a grandparent) looking for a practical way to help your adult kids buy their first home, there's a powerful — and often overlooked — option: the gifted deposit.

In this guide, we’ll explain what it is, how it works, and why so many families across the UK - especially in Plymouth and the wider Devon and Cornwall area — are turning to Save On Mortgages for expert, fee free advice that makes it all possible.

What is a gifted deposit?

A gifted deposit is exactly what it sounds like: money given to a homebuyer — usually from a parent or grandparent — to help cover all or part of the deposit on a property. It’s a gift, not a loan, meaning the person giving the money doesn’t expect to be paid back or have any ownership of the property.

Lenders love clarity, so they’ll want proof that:

• the money is a gift, not a loan

• the person giving the monetary gift has no stake or interest in the property

• the funds are from a legitimate source.

Which brings us to...

What do you need to gift a deposit?

If you're thinking about gifting a deposit, here’s what the process usually involves. The person making the gift must provide:

• a gifted deposit letter (a simple document stating the money is a gift)

• proof of ID and proof of address

• proof of funds (bank statements or savings documents showing where the money’s coming from).

The lender will want:

• confirmation that the buyer can afford the mortgage independently

• that the gift doesn’t come with strings attached.

Not sure where to start? That’s where Save On Mortgages comes in. We help families all across the UK — as well as here in Plymouth, Devon — navigate the paperwork and get everything in order.

How much can you gift?

There’s no legal limit to how much you can gift, but most lenders require at least a 5% deposit, 10% if you can as the more you can contribute, the better the mortgage deal your child will get.

Here’s a quick example:

Property Price 5% Deposit 10% Deposit

£200,000 £10,000 £20,000

£250,000 £12,500 £25,000

£300,000 £15,000 £30,000

Even a modest gift can unlock better interest rates and more lender options.

Can grandparents gift a deposit too?

Absolutely. In fact, many grandparents love the idea of “giving with warm hands” — helping their grandchildren now, rather than waiting until later. It can also be an effective way of reducing inheritance tax, as gifts up to £3,000 per tax year (2025-26) are exempt, and larger gifts can fall outside your estate if you live for seven years after giving them.

That said, we always recommend speaking to a financial adviser if inheritance tax is a concern.

Why a gifted deposit makes a real difference

For first time buyers, scraping together a deposit can take years. Many are stuck renting, watching house prices rise faster than their savings.

Here’s how a gifted deposit helps:

• speeds up the buying process — no need to save for years

• unlocks better mortgage deals — lower interest rates, smaller monthly payments

• gets them out of renting — no more throwing money away.

And for you? You get the satisfaction of seeing your kids (or grandkids) settled in their own home — and knowing you made it happen.

Don't let the red tape get in the way

Many parents hesitate because they think it’s complicated. That’s where Save On Mortgages comes in. Based in Plymouth, Devon, we’ve helped dozens of local families — and hundreds across the UK - make the gifted deposit process smooth, simple, and stress free.

✔️ We’re completely fee free

✔️ We offer whole of market mortgage advice

✔️ We’ll walk you (and your son or daughter) through every step

Ready to help?

Thinking of helping your child fly the nest with a gifted deposit? Let’s talk it through.

Whether you're gifting a small sum or the full deposit, our team at Save On Mortgages will make sure everything is handled the right way — no jargon, no stress.

Visit our Contact Page by clicking here

or

call us today on 01752 408040

We’re your local experts in Plymouth, Devon — and we help many more clients across the whole of the UK.

Key takeaways

a gifted deposit can make homeownership possible for your children or grandchildren
it must be a true gift, with no expectation of repayment or ownership
you’ll need a gift letter, proof of funds, and possibly tax advice
Save On Mortgages can guide you every step of the way — completely fee free friendly and expert mortgage advice.

So why wait?

Give the gift of home. It’s a decision your future homeowner offspring will thank you for — every time they close the front door behind them.

Here are a few examples of what our first time buyers say about us

Testimonials

I cannot thank Mark enough for everything, he was absolutely amazing, so reassuring, professional and nothing was too much trouble. As first time buyers it was very daunting, but Mark was fantastic and with us every step of the way. I would highly recommend Save On Mortgages and will definitely be using them in the future. Thanks to Mark at Save On Mortgages we are now proud owners of our beautiful own home.

Joan D - May 2025

We’re so grateful for the support we received from Mark Lenthall at Save on Mortgages throughout the process of buying our first home. Mark was knowledgeable, approachable, and he took the time to explain every step and answer all of our questions.

Mark was very efficient and ensured we faced no delays in our purchasing process. We couldn’t have asked for a better advisor and would highly recommend Save on Mortgages.

Sydni C - May 2025

Mark was fantastic! We were recommended Mark by a friend who had used him several times. He made the process so smooth and easy! We were buying our first house so it was great to chat to a broker who could explain everything so clearly. He dealt with every enquiry and change quickly and efficiently. And made the whole process non-stressful. I would highly recommend and always say to friends if they need a broker, he's your guy!

Gemma H - March 2025

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