Short answer
Waterstone Legal is on NatWest’s conveyancing panel; we confirm when you instruct. NatWest asks each person giving you deposit money for a letter or email saying whether the gift must be paid back. A repayable gift is allowed, but NatWest counts the repayments when it works out what you can borrow.
On this page
- NatWest at a glance
- What should a NatWest gifted deposit letter say?
- Can a gift be repayable with NatWest?
- Is a Royal Bank of Scotland mortgage handled the same way?
- What does NatWest ask us to check?
- Who is giving the most deposit help, and does it change NatWest’s rules?
- What changes for a NatWest mortgage on a home in Wales?
- Our fees
- What happens next
NatWest at a glance
| Gift letter | A letter or email from each giver; no signature needed on an email |
|---|---|
| Repayable gifts | Allowed from family; repayments count against what you can borrow |
| Most a gift can cover | No maximum: a gift can be the whole deposit |
| Lease left | At least 30 years when the mortgage ends |
| Builder incentives | Up to 15%; anything over 5% comes off the price first |
| Changing names on the mortgage | Your own solicitor, registered with LMS |
What should a NatWest gifted deposit letter say?
NatWest’s guide says most gift letters include:
- your name, as the person receiving the gift;
- who is giving (for example a parent or a friend) and how they are related to you;
- the amount;
- that the giver expects no repayment (or, if the gift is repayable, the terms);
- that the giver makes no claim on the home.
NatWest’s own rule is shorter: a letter or email from each giver confirming whether the gift is repayable or not, with the repayment details if it is. Each giver sends their own. NatWest says an email is fine and no signature is needed. NatWest’s broker criteria say a Gifted Deposit Letter is needed in every gifted deposit case, and its broker site has a template. We tell you which version to use when we see your mortgage offer.
The letter is for NatWest. We still need the giver’s ID and proof of where the money came from, under the money-laundering rules.
Can a gift be repayable with NatWest?
Yes, if it comes from family, and the letter must say so. NatWest then treats the repayments as one of your outgoings, which can lower what it will lend. A gift from a friend or anyone else outside the family must not be repayable. And you cannot use an unsecured loan you must repay toward the deposit.
There is no upper limit: NatWest says a gift can be any share of the deposit. A large or repayable gift raises a legal question too. If a parent expects money back, or a share of the home, that changes who owns what. We explain it before you sign anything, and point you to a declaration of trust if one is needed.
Is a Royal Bank of Scotland mortgage handled the same way?
NatWest and Royal Bank of Scotland are in the same banking group, and their public gift guides read the same. Their other published rules may still differ, so we check the criteria of the lender named on your offer. If your offer is from Royal Bank of Scotland, tell us before you instruct and we check our panel position with it.
What does NatWest ask us to check?
| NatWest’s requirement | What it means for you |
|---|---|
| Letter or email from each giver, stating if the gift is repayable | One per giver; email is fine, no signature needed |
| Repayable family gifts allowed; repayments counted in affordability | You may be able to borrow less |
| Non-family gifts must not be repayable | A friend’s gift must be a true gift |
| No unsecured repayable loan toward the deposit | A personal loan can’t fund the deposit |
| No maximum gift | A gift can cover the whole deposit |
| NatWest may confirm the giver’s ID and see their statements | The giver may hear from NatWest as well as from us |
| A Gifted Deposit Letter in every gift case (template on NatWest’s broker site) | We check the letter before exchange |
| No permanent right to live in the UK: deposit from your own money (builder incentives aside), 75% maximum, at least 6 months left on the visa | A gift is not an option in that case; ask your broker |
| Lease: at least 30 years left when the mortgage ends (10 for some prime central London homes); under 85 years, NatWest warns the value keeps falling | A short lease can mean a lower valuation |
| New build: houses up to 95%, flats up to 90%; builder incentives up to 15%, but anything over 5% comes off the price first | A big incentive can lower what NatWest lends |
| New build needs a structural warranty with 10+ years left at completion, or a Professional Consultant’s Certificate issued before exchange | We check the warranty before exchange |
| Flats over or near shops and offices: considered if the valuer is happy | The valuer weighs noise, smells, opening hours and fire risk |
| Cladding (England, over 11 metres): NatWest checks government remediation data first; EWS1 A1, A2, B1 accepted; A3 or B2 needs a Leaseholder Deed of Certificate from the seller | We ask the seller and managing agent for these papers |
| Shared ownership: minimum 25% share, up to 95% of it, repayment only; no free legals on a shared ownership remortgage | You use your own solicitor to remortgage |
| Right to Buy (England): 100% of the discounted price, up to 90% of market value | We deal with the council’s right of first refusal on resale |
| Adding or removing a name: your own solicitor, registered with LMS; at most two people on the mortgage | Ask us about this when you instruct |
| Remortgage: standard legal work paid by NatWest on its fees-assisted products, or a cashback with your own solicitor | Not for divorce-linked or disputed transfers, shared ownership or title defects |
Waterstone Legal is an independent firm. This page is not written or endorsed by NatWest.
Who is giving the most deposit help, and does it change NatWest’s rules?
About 30% of the people who asked us for a buying quote had a gifted deposit, and about 75% were first-time buyers (website quote requests, 2 Sep–29 Oct 2026). Gifts often come from parents. NatWest’s rule is the same whoever gives, apart from repayment: family may be repaid, others may not. If both sets of parents give, each sends a letter. If you are also using a Lifetime ISA, tell us early: the provider pays the money to your conveyancer, not to you, within 30 days of the paperwork, so the timing matters. See conveyancing for first-time buyers.
What changes for a NatWest mortgage on a home in Wales?
NatWest’s gift rules do not change. For flats in taller blocks, NatWest’s cladding rules for Wales are set out separately from England’s, so we check the Welsh ones. The tax changes too: Land Transaction Tax, with no first-time buyer relief in Wales. Our LTT calculator works it out.
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) |
|---|---|
| RemortgagingFreehold home, borrowing under £1m | £610 – £910 + VAT (£732 – £1,092 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
- Royal Bank of Scotland: Gifted deposits, checked 29 October 2026
- NatWest Intermediary Solutions: Property and valuations, checked 29 October 2026
- NatWest Intermediary Solutions: Shared ownership, checked 29 October 2026
- GOV.UK: Conveyancers, first-time residential purchase with a Lifetime ISA, checked 29 October 2026
- Welsh Revenue Authority, Land Transaction Tax guide, checked 29 October 2026
- NatWest: Gifted deposits, checked 29 October 2026
- NatWest Intermediary Solutions: Lending criteria, checked 29 October 2026
- NatWest Intermediary Solutions: New build hub, checked 29 October 2026
- NatWest: Changing the names on your mortgage, checked 29 October 2026
Contains public sector information licensed under the Open Government Licence v3.0.
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