Short answer
Waterstone Legal is on HSBC UK’s conveyancing panel; we confirm when you instruct. If a family member gives you deposit money, HSBC says your solicitor gets a letter from them: the gift is non-refundable, with no conditions. If the giver or your savings are abroad, start the paperwork early.
On this page
- HSBC UK at a glance
- Can you use a gifted deposit with HSBC if you are not settled in the UK?
- What must an HSBC gifted deposit letter confirm?
- Moving savings from abroad for an HSBC purchase: what do we need to see?
- What does HSBC ask us to check?
- Will you pay the 2% non-resident Stamp Duty surcharge on an HSBC purchase?
- Buying in Wales with HSBC: what is different?
- Our fees
- What happens next
HSBC UK at a glance
| Who can give you a deposit | Family only, from a named list of relatives |
|---|---|
| Gift letter | Your solicitor gets a signed letter from the giver |
| No buyer settled in the UK | A deposit from your own money first; 85% maximum |
| Lease left | More than 50 years when the mortgage ends |
| If your firm is not on the panel | HSBC appoints a firm through LMS and you pay for it |
| Who runs the panel | LMS |
Can you use a gifted deposit with HSBC if you are not settled in the UK?
It depends on your immigration status, HSBC’s broker criteria say:
- At least one buyer is a UK national, or has settled status, indefinite leave to remain, indefinite leave to enter or right of abode: HSBC’s standard rules apply, so a gift from family is fine.
- No buyer has any of these: you need a deposit from your own money first, and a gift can only go on top. HSBC lends up to 85%. HSBC’s criteria give both 15% and 25% for that own-money deposit, so your broker confirms the figure before you rely on a gift.
- You have pre-settled status: HSBC’s criteria treat it differently in different places, so your broker confirms which rules apply.
- You live outside the UK: at least 25% must be your own money before a gift counts.
Money sent from abroad must come from a country HSBC accepts. Your broker or HSBC confirms what applies to you before the offer.
If your status is changing, for example an ILR application is pending, tell your broker. Waterstone Legal also has an immigration team, and we do ILR consultations. The conveyancing team does not advise on your visa, but we can put you in touch.
What must an HSBC gifted deposit letter confirm?
HSBC’s own guide says your solicitor obtains a letter from the giver. The letter confirms three things: the money is a gift and not refundable, it comes with no conditions, and the giver claims no interest in the home. HSBC only takes gifts from family: a spouse or partner, parent, grandparent, brother or sister, aunt, uncle, cousin, or an in-law or step relation. Personal loans, credit cards and loans from family or others can’t be used for the deposit; borrowing secured on another property you own can. If the giver will live in the home, they must be family too. HSBC publishes no form of its own, so we get that letter from the giver and check it says all three things.
Whoever gives, we also check their ID and where the money came from, under the money-laundering rules. If the giver lives abroad, that can mean ID documents and statements from a bank outside the UK, which take longer to gather. About 5% of the people who asked us for a buying quote said their gift came from outside the UK (website quote requests, 2 Sep–29 Oct 2026).
Moving savings from abroad for an HSBC purchase: what do we need to see?
Money from your own account abroad is not a gift, but we still trace it. Expect to show where it was held, how it built up (salary, a sale, savings), and the transfer into the UK. Start early: overseas banks can take weeks to send statements, and currency transfers need time to clear before exchange. We frame our checks by where money is held and sent from, never by nationality. We tell you exactly which documents we need once you instruct us.
What does HSBC ask us to check?
| HSBC’s requirement | What it means for you |
|---|---|
| Standard gift rules if at least one buyer is a UK national or settled (ILR, settled status, ILE, right of abode) | Check your status with your broker before relying on a gift; with pre-settled status, your broker confirms which rules apply |
| No buyer settled: a deposit from your own money first (HSBC’s criteria give both 15% and 25%); a gift only on top; 85% maximum | Your broker confirms the figure before you rely on a gift |
| Gifts from family only (a named list of relatives) | A friend can’t give you the deposit for HSBC |
| Solicitor obtains a letter from the giver: non-refundable, unconditional, no interest in the home | The giver signs a letter that says all three |
| Lease: more than 50 years left after the mortgage ends; under 85 years at the start, the valuer decides; ground rent on older leases no more than 0.2% of the value | A short lease or high ground rent can stop the loan |
| New build: houses up to 90%, flats up to 85%; builder cash incentives up to 5% (over that comes off the price); every incentive declared | Tell us every incentive the builder offers |
| Buying with a firm not on HSBC’s panel: HSBC appoints a firm through LMS and you pay HSBC’s published fee for it | You pay two firms; if we are on the panel, this does not arise |
| Remortgage: separate representation is not an option; HSBC’s appointed firm acts for the bank only, or your own panel firm acts for you and HSBC on a cashback product | A transfer of title alongside needs your own lawyer |
| Panel firms are approved by LMS; firms regulated by the SRA must hold CQS | Waterstone Legal is CQS accredited |
| Flats: not normally over four storeys without a lift; an EWS1 depending on height and wall materials; homes in England under a remediation scheme or Building Safety Act protections still considered | We ask the managing agent for the Landlord Certificate if needed |
| Right to Buy: only through HSBC branches or by phone. Shared ownership purchases: HSBC’s broker criteria say it does not currently take applications to buy a first or further share | Your broker can’t arrange these with HSBC |
| Living outside the UK: a minimum income set by HSBC, 75% maximum, deposit from your own money (gifts only on top of 25%) | Start the overseas paperwork early |
Waterstone Legal is an independent firm. This page is not written or endorsed by HSBC.
Will you pay the 2% non-resident Stamp Duty surcharge on an HSBC purchase?
It depends on where you have lived, not on your lender. If you were not in the UK for at least 183 days in the 12 months before the purchase, you usually pay a 2% Stamp Duty surcharge on a home in England. It sits on top of any other rates. Land Transaction Tax in Wales has no such surcharge. If you are buying with someone else, one non-resident buyer usually means the surcharge applies, unless you are married or civil partners, not separated, and one of you is UK resident; you may be able to claim a refund if you become UK resident afterwards. We work out the figure from the facts you give us, and our Stamp Duty calculator gives an estimate.
Buying in Wales with HSBC: what is different?
HSBC’s gift and deposit rules are the same in Wales. For flats with cladding, HSBC looks at Welsh Government remediation schemes instead of the English ones. In Wales you pay Land Transaction Tax to the Welsh Revenue Authority instead of Stamp Duty.
Our fees
| Buying a residential propertyStandard purchase of a freehold home under £2m, with one mortgage | £1,010 – £1,910 + VAT (£1,212 – £2,292 including VAT) |
|---|
Typical ranges for a standard transaction, excluding VAT at 20% and disbursements. Every client receives a written, itemised quotation with an exact figure before instructing us. See all our fees and what they cover.
What happens next
Legally reviewed by Shah Ali, Senior Partner, on 30 October 2026.
Last updated 30 October 2026.
Sources
- HSBC UK for Intermediaries: Residential criteria, checked 29 October 2026
- HMRC, Rates of Stamp Duty Land Tax for non-UK residents, checked 29 October 2026
- Welsh Government: Land Transaction Tax guide, checked 29 October 2026
- HSBC UK: How much deposit do you need, checked 29 October 2026
Contains public sector information licensed under the Open Government Licence v3.0.
Waterstone Chambers LLP, trading as Waterstone Legal, is authorised and regulated by the Solicitors Regulation Authority (SRA No. 605949) and CQS accredited. Not happy with our service? See how to complain.