Proving source of funds is a regulatory requirement because buying property is susceptible to fraud due to the large sums of money which change hands. If the source of the funds you are using for your purchase cannot be proven, your purchase will not be able to proceed.
Please be aware, if we suspect all or part of your funds are proceeds of crime, we are legally obligated to report this to the relevant police body.
Please be assured we take our obligations regarding source of funds extremely seriously. We require proof of source of funds from All buyers. It is the buyers’ responsibility to prove the source of any funds they wish to use towards their purchase.
Proving source of funds can be complex. We would always rather you provide us with as much evidence and information as you possibly can. This will ensure we are satisfied our proof of fund requirements have been met.
There are a variety of sources of income, each with specific proof requirements. Below, we explain the proof we require for the most frequently utilised source of funds.
Savings are usually made up of regular small payments from your salary or other income. As proof of savings, we require a minimum of 6 months’ bank statements, showing the incoming salary. Often, savings are moved into a separate bank account from the one that the salary is paid into. In this case, we would also need at least 6 months’ of bank statements from any accounts your savings are transferred into.
If you have already completed on the sale, please provide the completion statement issued by your conveyancer along with the bank statement showing the receipt of funds.
If your property is on the market or under offer, we can confirm this with your estate agent and mortgage broker, it will be useful to give them authority to discuss this with us.
We must confirm the identity of the gift provider. Our anti-money laundering procedures require us to verify the identity of anyone providing funds for the purchase. In most cases, we can arrange electronic identification verification, otherwise we will need a copy of their passport or photo card driving licence and a recent bank statement or utility bill which clearly states their address (not a mobile phone bill and in either case, not more than 3 months old).
Finally, gifted deposits are subject to the same source of fund requirements as any other funds we receive. Therefore, the requisite evidence from the source of the funds prior to it being gifted must be provided, as set out above and below.
If you wish to use inherited funds, we will require a copy of the letter from the executors confirming your entitlement and a copy of your bank account statement evidencing receipt of the funds from the solicitor or executor’s bank account.
In order to use funds from a release of pension, we require a copy of your pension statement as well as a copy of your bank statement evidencing receipt of the funds.
In order to use funds made through the sale of shares, we will require a certified copy of the share release schedule and a copy of your bank account statement evidencing receipt of the funds.
If you wish to use dividends from a UK company, we require a certified copy of your dividend certificate, a copy of the company’s accounts and a copy of your bank statement evidencing receipt of the funds.
Please note, if you wish to use dividends from a company based outside the UK, different requirements may apply. Please see the below section on international funds.
If you wish to use gambling winnings as all or part of your deposit, we will require a copy of your receipt proving your winnings and copy of your bank statement evidencing receipt of the funds.
Please be aware, it is difficult to prove source of funds for cash winnings. Please see the below section on cash.
You may have received a lump sum as compensation following a dispute or claim you have brought. If you wish to use these funds, we require a letter confirming the agreed compensation from a solicitor or court and a copy of your bank account statement evidencing receipt of the funds from the court, solicitor or third party.
We are unable to accept cash as all or part of your deposit. It is almost impossible to prove the source of cash funds.
We must assess the country of origin of all funds. If your funds are from or connected to a high-risk country, we may not be able to proceed with the purchase.
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