With property prices where they are, saving for a deposit can feel like the hardest part of buying a home for the first time.

So, it's no surprise that one of the most common questions we hear is:

"Can my parents help me with my deposit?"

The short answer? Yes, they absolutely can.

But how they help (and how it's structured) can make a big difference when it comes to your mortgage.

Let's break it down in a simple, straightforward way.

First… What Is a Deposit?

Your deposit is the amount you put down upfront when buying a property.

Typically, this is:

  • Around 5% to 20% of the property price

The bigger your deposit:

  • The more you can borrow
  • The better mortgage deals you may have access to

How Can Parents Help?

There are two main ways parents usually help with a deposit:

  1. Gifting the money
  2. Lending the money

This might sound similar… but to a mortgage lender, they're very different.

Option 1: A Gifted Deposit (Most Common)

This is where your parents give you the money with no expectation of repayment.

This is the most straightforward option - and the one lenders prefer.

What lenders will ask for:

  • A gifted deposit letter confirming it's not a loan
  • Proof of where the money has come from (for anti-money laundering checks)
  • Confirmation your parents won't have any ownership in the property

What about tax?

In the UK, gifted money can fall under inheritance tax rules.

If your parents pass away within 7 years, the gift may be considered as part of their estate.

This doesn't affect your mortgage, but it's worth being aware of.

Option 2: A Loan from Your Parents

This is where your parents expect the money to be repaid.

It might feel like a flexible option… but it can make things more complicated.

Why? Because lenders will:

  • Treat it as debt
  • Include repayments in your affordability checks

This could reduce how much you're able to borrow - or in some cases, affect whether you're approved at all.

How Do Lenders View It?

From a lender's point of view, the key question is: Is this money going to need paying back?

  • If no (gift) → usually fine
  • If yes (loan) → more scrutiny, less flexibility

That's why most buyers (and lenders) prefer the gifted route.

Do You Need Anything in Writing?

Yes, whichever route you take, paperwork is important.

If it's a gift, you'll need a gifted deposit letter.

If it's a loan, it's a good idea to have a formal loan agreement that outlines:

  • The amount
  • Repayment terms
  • Any interest (if applicable)

This protects both you and your parents and avoids misunderstandings later on.

The Conversation Most People Avoid (But Shouldn't)

Money and family can be a tricky mix.

So, before anything is agreed, it's important to have an open conversation about:

  • Expectations (is it truly a gift?)
  • Repayment (if any)
  • Your parents' own financial position

The goal is to make sure everyone is comfortable - now and in the future.

What If My Parents Can't Help?

You're definitely not alone - and there are other options.

Lifetime ISA (LISA)

  • Save up to £4,000 per year
  • Get a 25% government bonus (up to £1,000 annually)

Shared Ownership

  • Buy a percentage of a property
  • Pay rent on the remaining share

This can make getting on the ladder more accessible.

Why Speaking to a Mortgage Advisor Helps

This is where things can get a lot clearer.

At HLC Mortgages, we:

  • Help you structure the deposit in the right way
  • Make sure it fits lender criteria
  • Guide you through what's needed (letters, proof, etc.)
  • Find a mortgage that's suitable for your circumstances

It's about avoiding delays, confusion, or surprises later on.

Final Thoughts

Getting help from your parents can be a huge boost when buying your first home.

But the key is understanding:

  • Whether it's a gift or a loan
  • How lenders will view it
  • And making sure everything is clear from the start

Done properly, it can make getting onto the property ladder much smoother.

If you're thinking about using family help for your deposit and want to understand your options, our friendly team at HLC Mortgages are always here to help - no pressure, no jargon, just straightforward advice. Contact us today!

Think carefully before securing your debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.