When you’re buying a home, one of the first things your solicitor will ask for is proof of funds. Solicitors request proof of funds when buying a house so they can verify how your deposit was built up – whether through savings, a previous sale, inheritance, or a gift.
It might feel like extra paperwork, but these checks are a normal part of the conveyancing process. Every property transaction in the UK requires a source of funds check, and it helps keep your purchase safe, legal and compliant.
In this video, we explain the importance of providing proof of your source of funds during the conveyancing process. This step is a legal requirement designed to prevent money laundering and ensure all property transactions are legitimate.
What Does “Source of Funds” Actually Mean?
“Source of funds” simply means how your deposit or purchase money has been accumulated over time – not just the account it sits in today.
It helps your solicitor confirm that the money that will be used for a house purchase is legitimate and traceable.
How to Prove Source Of Funds
There are various documents needed when buying a house, such as bank statements showing your savings which act as evidence of your funds for a house purchase.
Depending on how your deposit was built up, your solicitor may ask for documents to prove each source of funds, including gifted deposit proof if someone is helping you with part of the deposit.
These include:
- Savings from your salary – bank statements or payslips showing regular income
- Proceeds from selling another property – completion statement or sale contract
- Inheritance – letters from executors confirming the transfer
- Pension or investment withdrawals – statements confirming the funds
- Gifted deposit – a signed declaration from the donor, plus supporting documents
- Other large or unusual one-off payments – a brief explanation or supporting paperwork
Providing this evidence allows your solicitor to verify that the money you’re using for your home is legitimate and complies with legal requirements.
Why Solicitors Check Your Source of Funds
All conveyancers must carry out anti-money laundering checks (AML checks). These checks aren’t about questioning your finances and it doesn’t mean your solicitor is doubting your ability to buy; they are a legal requirement for every property purchase in the UK.
As part of how solicitors check source of funds, they must be able to show where your deposit has come from and demonstrate a clear “paper trail” for regulators, your mortgage lender, and compliance bodies.
How Long Do Checks Take?
Most checks are completed quickly once the documents are provided.
Common timescales are:
- Savings – usually same day
- Gifted deposits – 1-3 days, depending on donor paperwork
- Inheritance or investment withdrawals – 1-5 days
- Complex or mixed sources – may take longer if clarification is needed
Delays usually happen when documents are missing, unclear, or incomplete.
Tips to Make The Source of Funds Process Easier
Here are some practical ways to help your source of funds property transaction go smoothly:
- Start collecting documents early – bank statements, payslips, inheritance letters, or gift declarations.
- Keep digital copies – PDFs are easy to share securely.
- Be transparent about gifts or unusual payments – a brief note explaining any large or one-off transfers helps avoid delays.
- Use secure sharing tools – open banking services allow safe and fast information sharing.
- Tell your solicitor if there are multiple sources – mixed deposits often need more documentation
Being prepared helps your solicitor carry out conveyancing source of funds checks more efficiently and keep your move on track.
Providing proof of deposit for house purchase may feel like another hurdle, but with the right paperwork ready, it’s actually straightforward and shouldn’t delay your move.
Need Guidance?
Whether it’s your first home or your next move, our team is here to help you understand the source of funds requirements and guide you through what documents you need when buying a home. Speak to one of our experienced residential conveyancers today for advice or get an instant online conveyancing quote on our website.
