CIS Mortgage Gifted Deposit
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Most buy to let mortgages are not regulated by the Financial Conduct Authority
CIS Mortgage Gifted Deposit
David Sharpstone explains how gifted deposits work if you’re part of the Construction Industry Scheme.
Podcast approved by The Openwork Partnership on 09/12/2025.
Can I get a CIS mortgage with a gifted deposit?
If you’re a CIS paid construction worker, a gifted deposit doesn’t necessarily have to be the whole deposit – it might just be part of it. Absolutely every single lender that accepts CIS construction workers will also accept a gifted deposit.
But we need to be really careful of where it has come from. The source of deposit and who’s gifting it is important to consider.
Do all lenders accept gifted deposits for CIS workers?
Yes, but they will look closely at where it’s come from. In particular, it has to be cleared in a UK bank account at the time of the mortgage application.
I work with a lot of foreign nationals and have great pleasure in helping them buy their first house in the UK. Often their deposit has come from other countries – often from family members selling property or land, or an inheritance.
We’ve got to make sure that the money is in the UK at the time of applying. There are other considerations as well, but we can go into that on another question.
What proof do I need for a gifted deposit on a CIS mortgage?
It depends on the lender, but I also have my own requirements. I need to make sure we cover the source of funds and make sure every penny can be accounted for.
I always ask for ID from the person gifting it, to start with. We also ask for a Deed of Gift letter – using a letter template to confirm that the person gifting the money won’t be living in the property, that it is a gift and not repayable. It also confirms no interest is being paid on the gift. Some mortgage lenders have their own form to fill out instead of using a letter.
We’d also want to see the source of funds for the person gifting the money. We’d not only want to see it in their bank account, but also moving from their bank account into yours.
We need to see where they’ve got the money from, too. If they’ve just had a recent cash deposit into their account, we would be asking questions about where that came from. We then track that back over a period of time.
Who can gift a deposit for a CIS mortgage?
The list of gifters for a deposit differs from lender to lender, but it’s normally blood relatives on the whole.
It can extend as far as aunties, uncles, stepparents and grandparents, but most mortgage lenders don’t accept gifts from cousins. Friends and godparents are not normally accepted either.
How much of my deposit can be gifted on a CIS mortgage?
If you’re CIS worker and all of your deposit is coming from a gift, that’s absolutely fine. You don’t have to be putting in a penny of your own money. It can all come as a gift.
Will using a gifted deposit affect my CIS mortgage rates?
No. As long as your deposit meets the requirements of the mortgage lender, it will not affect the rate that you’re being charged.
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What checks do lenders do on gifted deposits for CIS mortgages?
The mortgage lender actually does very little. They may not even ask for evidence of it. Some will ask for a gift letter, and others go further and ask for evidence of the gifters’ funds alongside a gift letter or a signed form.
Some lenders ask for nothing, and instead put the onus on the solicitor to do the checks. The solicitor works for the buyer, but it also represents the lender’s interest, as well. A lender may ask the solicitor to do all the checks on the deposit and confirm they are happy with it. Then, it meets the lender’s rules.
Can I get a CIS mortgage with a gifted deposit and no savings?
Absolutely. You don’t need to put in any of your own money if you’re paid through the CIS scheme. If you’ve got at least a 5% deposit from a gift, that’s not a problem.
Does a gifted deposit have to come from the UK for CIS mortgages?
If you’re getting a gifted deposit, the money must be in a UK bank account at the time that the advice is given and the application is submitted. But it can come from outside of the UK.
If it is from outside the UK, make sure there’s a very clear paper trail. For example, if some land is being sold in Romania, we need translated paperwork to show that sale, then that money going into a bank account in Romania, then leaving that bank account in Romania and arriving and clearing in pounds sterling in the UK.
Any gaps in that paper trail can cause problems. If somebody sold a car in another country for cash, it’s going to be very difficult to prove where that cash has come from.
Always check with your mortgage adviser on the country that deposit is coming from, because some countries are on a high risk list with the Financial Conduct Authority (FCA). We have to be really careful of that before going ahead.
How can a mortgage broker help me get a CIS mortgage with a gifted deposit?
Gifted deposits can cause complications. It’s not unusual for the source of funds to suddenly change at the last minute, before exchange of contracts.
A gift that might have been coming from savings initially can suddenly disappear – for example because a client used that money to buy a car instead. Or perhaps their mum in Russia was going to gift the money – but Russia is on the sanctioned list and then everything falls apart.
A mortgage broker like myself, who has a lot of experience in working with deposits from around Europe and other parts of the world, will know what’s acceptable. We know how to ensure the paperwork matches money laundering rules, not only as mortgage advisers, but also for the solicitor and mortgage lender.
If you know all the answers without a mortgage broker, I’m incredibly impressed. But really, I think you need a broker to help you navigate the minefield of gifted deposits for CIS mortgages.
Key Takeaways:
- You can use a gifted deposit for the whole or part of your deposit; you do not need to contribute any of your own savings.
- Regardless of where the money originates, the gifted deposit must be cleared in a UK bank account at the time the advice is given and the mortgage application is submitted.
- You will need the gifter’s ID, a signed Deed of Gift letter (confirming the money is not repayable and the gifter won’t live in the property), and a clear paper trail proving the gifter’s source of funds.
- Lenders typically only accept gifts from blood relatives. This usually extends to stepparents, grandparents, aunts, and uncles, but generally excludes cousins, friends, and godparents.
- Gifted deposits, especially those from outside the UK or those that change at the last minute, can cause complications. A broker experienced with CIS mortgages and international deposits can help ensure the paperwork complies with money laundering rules.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
CIS Mortgage Advice is a trade name of Just Mortgages Direct Limited, which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited, which is authorised and regulated by the Financial Conduct Authority.
Approved by The Openwork Partnership on 09/12/2025.
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