Is there a Maximum amount you can receive as a 'gift' for a deposit on a mortgage?

Percent

If there is a max, what is it?
Thanks

lee111s

Not that I'm aware of.

audigex

The first thing to note is that a "Gifted deposit" isn't really a thing, it's just sometimes described as such if the gift is being given specifically during the transaction.

Remember that the person could simply give you the cash beforehand as a separate transaction, and that's then your cash and nothing to do with anybody else how much of your own money you use towards your house. I could hand you £10,000 right now (well, I couldn't, as I don't have £10,000, but you get what I mean) and you could use that for whatever you wanted. Nobody can limit how much of your money you put towards the house.

If it's equity in the house being gifted, then it's not even an "amount" - it's simply a proportion of the house you don't have to pay for. It's a discount, rather than a gift. At this point the only thing that really matters is the loan to value ratio: although the seller will have to declare that they will not live nor have any interest in the property after purchase, and you'll likely need insurance in case the seller goes bankrupt and their credits try to claim the equity in the house as part of the settlement.

Either way, there's no limit on the amount, as all you're really doing is asking for a smaller loan.

Thrugelmir

audigex wrote: »

I could hand you £10,000 right now (well, I couldn't, as I don't have £10,000, but you get what I mean) and you could use that for whatever you wanted. Nobody can limit how much of your money you put towards the house.

The source of the money may well be questioned. With modern technology there's now always an auditable trail. Little point in self inflicting problems upon ones self. Financial relationships are built on trust.

audigex

Yes, but asking the source does not prevent you from using that money. It is still your money: whether you were gifted it a month, a year, a decade before, or at the same time as making the purchase.

My point was more that although the "gift" is given at the same time, it can be more helpful to think of things as two separate transactions. A gift, then a deposit with your money (which includes the money you just received as a gift)

That's not to say it doesn't add complications (money laundering checks, extra insurance etc as mentioned), but it backs up the point that there is no limit to how much money a person can be gifted, nor how much money you can use for your deposit.