Heron Financial arranged a £350,000 mortgage with Halifax Intermediaries at an initial fixed rate of 4.76% on a 2-year fix for a solo first-time buyer Teacher purchasing a £370,000 terraced home near London. The £19,000 deposit was made up of £18,000 in family gift and £1,000 in personal savings, placing the loan at approximately 95% LTV. The case completed in December 2025.
The client
The client was a solo British first-time buyer working as a Teacher in a PAYE role, buying a terraced home near London for £370,000. They had built £1,000 in personal savings and received a £18,000 gift from family, giving a combined deposit of £19,000 toward the purchase. The priority was finding a lender comfortable with the high-LTV position, the gifted deposit structure and the solo applicant profile.
The case at a glance
- Buyer: Solo first-time buyer, British national, employed (PAYE)
- Occupation: Teacher
- Property type: Terraced house
- Location: London
- Purchase price: £370,000
- Deposit: £19,000 total (£18,000 family gift + £1,000 personal savings) (~5.3%)
- Loan amount: £350,000
- LTV: Approximately 94.7% (close to 95%)
- Lender: Halifax Intermediaries
- Product: 2-Year Fixed Rate
- Initial fixed rate: 4.76%
- Repayment method: Capital and interest
The challenge
Three features shaped this case.
1. Near-95% LTV. With a 5.3% deposit, the loan sat just under the 95% LTV threshold that marks the upper edge of mainstream lending. Lenders that compete at 95% LTV are fewer in number than those at lower LTVs, and affordability calculations are tighter. The headline rate at 95% LTV is also typically a meaningful step higher than rates at 75% or 60% LTV.
2. Gifted deposit as the primary deposit source. Of the £19,000 deposit, £18,000 came from a family gift and only £1,000 from personal savings. Lenders require gifted deposits to be evidenced clearly. The standard process involves a “gifted deposit letter” from the donor confirming the gift is non-repayable and that the donor has no interest in the property, alongside proof of the donor’s funds (bank statements showing the money) and ID verification. Most major lenders accept gifted deposits, but the supporting documentation and donor checks are essential.
The structure of the deposit also matters. When most or all of the deposit is gifted, lenders will sometimes apply additional scrutiny to confirm the buyer’s own financial position. With only £1,000 of personal savings on this case, evidencing the buyer’s regular financial management, bank statements, payslips, no adverse activity, became part of the wider underwriting picture.
3. Solo applicant on a single income. With one PAYE income carrying the full mortgage at 94.7% LTV, affordability sat at the upper edge of what the salary could support. The right lender for solo high-LTV cases combines a sensible affordability calculation with acceptance of the gifted deposit structure and competitive pricing at the 95% LTV tier.
Halifax Intermediaries, the broker channel of Halifax (part of Lloyds Banking Group), accepted the case across all three points. The 4.76% rate on a 2-year fix sat within mainstream 95% LTV pricing for the period.
How Heron Financial approached the recommendation
The Heron adviser worked through affordability against the client’s recorded salary, confirmed the gift donor’s funds and the gifted deposit structure, and matched the case to a lender competitive at 95% LTV that accepts the gifted deposit pattern. With the client wanting short-term payment certainty, Heron Financial recommended Halifax Intermediaries on a 2-year fixed rate at 4.76%.
Heron Financial managed the application through underwriting, including the gifted deposit documentation, the donor checks and the standard FTB process through to completion.
The outcome
The case completed in December 2025, just before year-end. The client moved into their first home with a fixed monthly payment locked in for the next two years and a clear point in the calendar to revisit their mortgage with Heron Financial ahead of the product end.
What this means for buyers in a similar position
Gifted deposits are how a significant proportion of UK first-time buyers actually get onto the property ladder. A few practical points worth knowing.
A gifted deposit is treated differently from a loan. The gift must be non-repayable, with no claim by the donor on the property. The donor needs to confirm this in writing through a gifted deposit letter, which the lender requires.
The donor’s funds need evidencing. Lenders typically want to see bank statements showing the source of the donor’s money, alongside ID verification. This isn’t a check on the donor’s wealth; it’s an anti-money-laundering requirement and confirms the gift is genuine.
Most lenders accept family gifts. The standard pattern is for the gift to come from parents, grandparents or siblings. Some lenders are more flexible than others on who counts as an acceptable donor. Lender choice matters more at higher LTVs where some lenders apply tighter rules.
95% LTV products exist but the field is narrower. Most major lenders offer 95% LTV products to FTBs, but criteria differ. Affordability calculations are tighter, and not every lender will accept a deposit made up almost entirely of gifted funds.
Personal savings matter even when the deposit is gifted. Lenders look for evidence that the buyer can manage their finances. Even a modest personal savings contribution alongside the gift, as in this case, supports the underwriting picture.
A 2-year fix at 95% LTV is a deliberate choice. With higher monthly payments at the higher LTV tier, locking in payments for two years gives short-term certainty while leaving an early review point in two years, when equity will have built up naturally and the LTV will be lower.
For solo first-time buyers using a family gift to make the deposit work, working with a broker who matches the case to a lender comfortable with the structure is what produces a clean placement.
FAQs
Can I use a gifted deposit for a mortgage?
Yes. Most UK mortgage lenders accept gifted deposits, typically from family members. The gift must be non-repayable and the donor must have no claim on the property. In this Heron Financial case, a solo first-time buyer used a £18,000 family gift alongside £1,000 in personal savings to make up a £19,000 deposit for a £370,000 home.
What documentation is needed for a gifted deposit?
Standard requirements include a gifted deposit letter from the donor confirming the gift is non-repayable, the donor’s bank statements showing the source of the funds, and donor ID verification. Specific requirements vary by lender.
Can the whole deposit be gifted?
Yes, with some lenders. Most major lenders accept gifted deposits making up most or all of the buyer’s deposit, though they will look closely at the buyer’s wider financial position to confirm they can manage the mortgage commitments. In this Heron Financial case, the gift made up around 95% of the deposit, with personal savings making up the remainder.
Is Halifax good for 95% LTV first-time buyer mortgages?
Halifax Intermediaries is the broker channel of Halifax, one of the major UK mainstream lenders, and is regularly considered for FTB cases including at 95% LTV with gifted deposits. Heron Financial assesses every case on its merits and selects a lender based on affordability, product pricing, criteria fit and service standards at the time of application.
What rate can I expect at 95% LTV?
Rates at 95% LTV are typically a step higher than at lower LTVs, reflecting the higher risk to the lender. In this Heron Financial case, the borrower secured a 2-year fix at 4.76%, which sat within mainstream 95% LTV pricing for the period.
