Deposit Evidence Guide
How should borrowers evidence every deposit source?
Written and reviewed by Sophie Harrison · Page last reviewed 8 May 2026
Deposits must satisfy anti-money-laundering (AML) and Consumer Duty standards. Detailed evidence ensures lenders and conveyancers release funds without delay.
Why do lenders scrutinise deposits?
AML regulations require lenders to trace the origin of funds to prevent financial crime.
- Lenders must identify the beneficial owner, verify source of funds, and assess source of wealth.
- Solicitors perform separate AML checks, so evidence must satisfy both parties.
- Incomplete documentation is a leading cause of exchange delays, especially for international transfers.
How are savings and investments evidenced?
Provide a clear audit trail showing accumulation and liquidity.
Savings accounts
- Submit three to six months of statements showing regular deposits.
- Explain any large one-off credits with supporting documentation.
- Keep funds in accounts registered to the borrower to avoid third-party issues.
Investments
- Provide portfolio statements and trade confirmations for liquidated assets.
- Ensure proceeds pass through a UK bank account before transfer to the solicitor.
- Retain evidence of share options or vesting schedules if using employee schemes.
What do lenders require for gifted deposits or equity?
Gifts must be transparent and unconditional.
- Donors provide photo ID, proof of address, and bank statements evidencing funds.
- Gifted deposit letters confirm the money is a true gift with no repayment expectation.
- Gifted equity requires a memorandum of sale showing the discount and a solicitor letter confirming the arrangement.
- Some lenders restrict gifts from non-family members, so confirm policy early.
How are inheritance, schemes, or overseas funds handled?
Each source has dedicated documentation requirements.
- Inheritance: probate letters, executor correspondence, and bank statements showing receipt.
- Government schemes (Help to Buy ISA, Lifetime ISA, Forces Help to Buy): official withdrawal statements and confirmation of scheme rules.
- Overseas funds: translated statements, currency conversion records, and proof the sender is a relative where policy requires.
- Company bonuses or redundancy payments: employer letters and payslips confirming net amount.
Can cryptocurrency or alternative assets fund deposits?
Many lenders remain cautious but will consider proceeds that pass through regulated channels.
- Convert crypto holdings to fiat via regulated exchanges with full transaction history.
- Provide wallet statements and exchange reports showing origin, trade dates, and counterparty.
- Season funds in a UK bank account, typically for 3 months, to demonstrate stability.
- Expect enhanced due diligence and potentially higher deposit requirements.
How do anti-money-laundering checks work?
Lenders, brokers, and solicitors follow regulated processes to verify funds.
- Know Your Customer (KYC) checks confirm identity via passports, driving licences, and proof of address.
- Source of funds traces the immediate account providing the deposit.
- Source of wealth explains how the funds were accumulated over time, supported by employment or business records.
- Politically exposed persons or high-risk jurisdictions trigger enhanced due diligence.
What readiness checklist prevents delays?
Before application
- Create a deposit summary sheet detailing each source and associated documentation.
- Avoid moving funds between multiple accounts close to exchange.
- Notify donors and executors that their documentation will be required.
During conveyancing
- Provide solicitor with statements as early as possible.
- Arrange international transfers well ahead of exchange to account for delays.
- Retain proof of any currency exchange fees or charges.
Which statistics highlight deposit trends?
- Average UK mortgage deposit: GBP 62,500 in 2024, equating to 27% of property value (Nationwide House Price Index 2024).
- 35% of first-time buyer deposits included family support, up from 27% in 2021 (Legal & General Bank of Family Report 2024).
- Overseas deposits accounted for 9% of London purchases in 2024, driven by returning expatriates (Hamptons International Market Overview 2024).
- Solicitors flagged incomplete AML evidence as the primary cause of exchange delays in 21% of transactions (Council for Licensed Conveyancers 2024).
