My parents are helping. Does that change anything?
It's a gift, so it's extra deposit. That's how it usually feels.
It needs documenting, and how it's documented affects whether it's a gift, a loan, or a share of the house.
Lenders treat it carefully. They'll usually ask for a signed letter confirming the money is a gift, that it doesn't need to be paid back, and that the person giving it won't own part of the home. They'll also want to see where the money came from.
If the money is really a loan, or your parents expect a share of the home, that's different. A loan is a commitment the lender will want to know about. A share of the home needs to be set out properly, usually with legal advice.
There's an inheritance tax side too. Gifts are generally free of inheritance tax if the person giving them lives for seven years afterwards. Each person can also give away £3,000 a year without it counting towards their estate.
None of this is a reason not to accept help. It's a reason to agree in writing what the money is, before the lender or the solicitor asks.
Where this information comes from
No inheritance tax is due on gifts if the giver lives for seven years after giving them, unless the gift is part of a trust.
Source: GOV.UK, Inheritance Tax: gifts. Checked 28 October 2026.
Each person can give away a total of £3,000 of gifts each tax year.
Source: GOV.UK, Inheritance Tax: gifts. Checked 28 October 2026.
General information, not advice about your circumstances. Rules and rates change; this page was last checked 28 October 2026. Spotted an error? Tell us.