Proof of Deposit for Mortgage: What Lenders Need and How to Show It

If you’re getting a mortgage in the UK, you’ll be asked for proof of deposit for mortgage approval. It’s not just box-ticking. Lenders must verify the source of your funds under anti-money laundering rules, and they also want to see your deposit is genuine, traceable, and sustainable. The good news? With the right paperwork, most deposits are straightforward to evidence. Here’s exactly what to prepare, what’s accepted, and how to avoid delays.

Check Your Eligibility with Expert Guidance

Before you fall in love with a property, sanity‑check your deposit. Where’s it coming from? Can you clearly evidence its origin for at least the last six months? If anything feels unconventional, crypto cash-outs, a windfall, money from overseas, get advice early. A quick chat with a whole‑of‑market mortgage broker can save weeks of back‑and‑forth later.

A broker will pre‑assess your “source of funds” and “source of wealth,” flag any gaps, and tell you which lenders are receptive to your circumstances. That means fewer surprises when the bank’s underwriting team combs through your statements.

Quick Summary

• You must evidence where your deposit came from to meet anti‑money laundering rules and lender policy.
• What you need depends on the source: savings, sale proceeds, gifts, inheritance, bonuses, etc.
• Clean, well‑documented sources (e.g., regular savings or a property sale) are widely accepted. Unclear cash injections are often declined.
• Prepare statements and supporting documents covering at least six months where possible. The clearer the paper trail, the faster the mortgage offer.

How to prove your mortgage deposit

The documents you’ll need vary by source. Aim for a continuous, legible paper trail that shows money moving from its origin into your account, then into your solicitor’s client account.

• Savings built from income:
• Last 3–6 months of bank statements showing salary credits and steady savings growth.
• If you’ve moved money between accounts, include statements for those too.
• Lenders love to see regularity and affordability: it reassures them the deposit wasn’t borrowed.
• Sale of property:
• Completion statement from your conveyancer/solicitor.
• Bank statement showing receipt of sale proceeds.
• If the property had joint owners, be ready to explain your share.
• Sale of other assets (car, shares, premium bonds):
• Sale invoice/contract or broker statement confirming the sale and value.
• Bank statement showing the funds landing. If it’s shares, include the trading statement.
• Gifted deposits (family or close friends):
• Gifted Deposit Letter confirming the money is an outright gift, non‑repayable, with no interest in the property.
• Donor’s ID (passport/driving licence) and proof of funds (their statements showing how they accumulated the gift).
• Some lenders restrict the relationship type: most accept parents and close relatives, some accept friends.
• Inheritance:
• Grant of Probate (or confirmation from the executor/solicitor).
• Estate account letter and your bank statement showing the distribution received.
• Work bonus/commission:
• Payslips and P60 (or employer letter) evidencing the bonus and when it was paid.
• Matching bank statement entries.
• Overseas funds:
• Statements from the overseas bank (translated if required) and evidence of the legal source (employment, sale, inheritance).
• Proof of transfer into your UK account. Some lenders won’t accept certain jurisdictions, check early.
• Equity release from another property (remortgage):
• Mortgage offer/completion statement showing released equity.
• Bank statement evidencing receipt and transfer to your solicitor.
• Cryptocurrency proceeds:
• Expect more scrutiny. You’ll need a full audit trail: exchange statements, wallet history, and fiat on‑ramp/off‑ramp records.
• Not all lenders accept crypto‑derived funds. A broker can point you to those that might.

Tips that make everything easier:

• Keep large cash deposits out of the picture, cash without a clear origin is often declined.
• Avoid moving money through multiple accounts right before you apply: it creates noise and extra questions.
• Supply PDFs directly from your bank where possible. Screenshots that cut off names or dates can trigger re‑requests.

How likely your deposit source is to be accepted

Lenders prioritise transparency and traceability. If your deposit’s origin is simple and documented, you’re in strong territory. If it’s complex, unusual, or hard to evidence, you’ll need more paperwork, and a lender who’s comfortable with nuance.

As a rule of thumb: personal savings, property sale proceeds and well‑documented gifts are widely accepted. Inheritances, bonuses or overseas funds are sometimes accepted but may require extra checks. Unexplained cash is rarely accepted.

Widely accepted deposit sources

• Personal savings built from regular income, evidenced with 3–6 months of statements.
• Sale of a property, backed by a solicitor’s completion statement and bank receipts.
• Gifted deposits from family (and sometimes friends) with a proper Gifted Deposit Letter, donor ID and proof of funds.
• Equity from a remortgage or sale of investments, provided you have the formal sale or completion paperwork and matching bank entries.

If you can point to a clear origin and a tidy paper trail, your lender’s underwriter can tick the box quickly.

We’re so confident in our service, we guarantee it

When you’ve lined up your documents properly, the mortgage process tends to move. Many brokers now offer document prep checklists, pre‑submission reviews and proactive chasing to keep underwriting on track. That’s how they can be so confident about timelines and approval odds, because well‑evidenced deposits leave little room for doubt.

If a provider offers a service guarantee, it usually hinges on you supplying complete and accurate paperwork promptly. Think of it as a partnership: you bring clear evidence: they bring lender know‑how and momentum.

Sometimes accepted

These sources are often fine, but you’ll need extra proof and the right lender policy:

• Inheritance: Probate documents and estate statements linking the distribution to you.
• Bonuses/commission: Employer confirmation, payslips and matching bank entries. Some lenders average variable pay.
• Overseas funds: Full source‑of‑funds evidence and transfer records: some jurisdictions are restricted.
• Sale of shares/crypto: Platform statements, tax records if relevant, and a clear path from asset to your account.
• Private sale of a high‑value asset (e.g., car): Bill of sale, buyer ID where possible, and proof of the funds arriving from the buyer’s account.

Rarely accepted

Underwriters will almost always push back on:

• Large cash deposits with no paper trail.
• Borrowed deposits (e.g., personal loans or credit cards) unless explicitly allowed, and even then, affordability may take a hit.
• Funds from unknown or high‑risk sources, including sanctioned regions.
• Third‑party gifts where the donor can’t prove the origin or refuses AML checks.

If any of the above apply, speak to a broker before you apply: they’ll advise whether to re‑structure the deposit or wait until you can evidence it properly.

Why do you need to evidence your mortgage deposit?

Two reasons. First, UK lenders must comply with anti‑money laundering legislation. They have to verify the source of funds and, in some cases, the source of wealth behind those funds. Second, evidencing shows the deposit is genuine and not a hidden loan that could distort affordability. This protects both you and the lender from future problems.

Expect underwriters to ask sensible follow‑ups if something’s unclear, like an unexpected lump sum or a transfer from a third party. That’s normal. Provide the missing context and documents quickly to keep things moving.

Some deposit sources are more acceptable than others:

Lenders favour sources that are easy to verify. Regular savings from salary? Simple. A completed property sale? Also simple. These create a neat chain: money earned or realised, received by you, then transferred to your solicitor.

Less standard sources, crypto gains, private cash sales, or funds moving through multiple accounts, aren’t automatically rejected, but they raise questions. The more steps, the more documents you’ll need. If your deposit includes several components (say, savings + inheritance + a small gift), label each stream clearly and gather documents per stream. Think like an underwriter: could a stranger follow the money from start to finish?

A broker can help you evidence your deposit:

A good mortgage broker knows which lenders accept what, and exactly how they want it packaged. They’ll:

• Map your deposit sources and list the documents needed for each.
• Spot red flags (unexplained cash, missing pages, mismatched names) before submission.
• Match you with lenders that are comfortable with your specific profile, overseas funds, gifts, or variable income.
• Coordinate with your solicitor so the deposit lands in the right place at the right time.

If you’re earlier in the process, start tidying your trail now: keep funds in traceable accounts, avoid last‑minute shuffling, and save clean PDFs. Do that, and your proof of deposit for mortgage approval becomes a straightforward tick, not a last‑minute scramble.

If you need help with your mortgage, please let us know.

Frequently Asked Questions