How Do I Prove My Deposit? | Buying My First Property | What Lenders Might Ask For

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My name’s Gemma, and here at WIS, we talk about all things related to money, mortgages, and positive money mindset. If that interests you, be sure to subscribe to our channel and hit the thumbs up — it really helps with the YouTube algorithm and ensures you don’t miss out on any of our videos.

On today’s episode of “Let’s Talk Money and Mortgages”, we’re joined by Ifthi, a trained accountant and mortgage advisor with over 11 years of experience, and one of the founding directors at WIS.

What Is Proof of Deposit?

Gemma: So, for those who aren’t really sure, what exactly is proof of deposit?

Ifthi: When you buy a property, especially through a mortgage, the lenders and solicitors want to know how much deposit you’re putting down and how you’ve saved that money. That’s what we refer to as proof of deposit.

In most cases, it’s the money you have in your savings, and lenders need to see how that money was built up.

1. Bank Statements

Gemma: Let’s start with the most common one — bank statements.

Ifthi: Yes, this is the simplest and most common form of proof for most people. Banks usually ask for three months of bank statements (some may ask for up to six). These statements help them verify that the funds are available and legitimate.

If someone is regularly saving — say, £500 each month — lenders can see the savings build up over time. That’s straightforward and satisfactory evidence.

However, for people with business income, dividends, or other sources, the bank might ask for additional supporting documents. Essentially, banks want to understand how the money was accumulated.

Gone are the days when people kept large sums of cash at home — most save directly in bank accounts, making bank statements the best form of evidence.

2. Gifted Deposits

Gemma: Many of our customers receive help from family. What documents are needed if the deposit is a gift?

Ifthi: Gifted deposits are very common, especially among first-time buyers. Often, parents or siblings help by giving money towards the property purchase.

If you receive a gifted deposit, the donor (for example, your parents) must provide a gifted deposit letter confirming that:

• The money is a gift
• There are no repayment conditions attached

Loans are not acceptable, as the money must not need to be repaid.

Additionally, most banks require bank statements from the donor (e.g. parents) to show how they built up those funds. If they’ve had the money in savings for a while, that’s ideal.

We at WIS can help draft gifted deposit letters, and we also have templates available. Different banks may require small adjustments, but we can guide you through the process.

3. Foreign Remittance

Gemma: What about people using foreign remittances as their deposit?

Ifthi: That’s becoming more common, especially with foreign nationals or people who’ve moved to the UK but still have funds abroad.

If you’re transferring money from overseas, you must show a clear audit trail:

• Show statements from your overseas bank (where the funds came from)
• Show UK bank statements (where the money landed)

Banks and solicitors are strict about this because they need to ensure the source of funds is legitimate.

Avoid using cash transfers, as they are generally not acceptable. Always use bank-to-bank transfers and maintain clear documentation. If you have special circumstances, it’s best to speak to an advisor for tailored guidance.

4. Shares

Gemma: And if someone wants to use shares as part of their deposit?

Ifthi: This can be a little tricky. If you hold shares through a broker or trading platform, you can download your portfolio statements. However, most banks will ask you to liquidate (sell) your shares first and transfer the cash into your bank account.

That’s because the value of shares fluctuates daily, and lenders want to see actual cash. It’s best to speak to an advisor, as requirements can differ depending on the lender. We can guide you based on which bank you’re applying to.

5. Alternatives if You Don’t Have Enough Deposit

Gemma: What options are available for people who don’t have sufficient proof of deposit?

Ifthi: Traditionally, buyers need a 10% deposit, but there are alternatives if you fall short.

a. Lifetime ISA

• Offers a 25% government contribution toward your savings.
• You must have the account open for at least one year before using it.
• Great for first-time buyers planning ahead.

b. Help to Buy Scheme

• Ideal for new-build properties.
• You only need a 5% deposit, and the government lends you 20%.
• This effectively gives you a 25% deposit in total.

c. Government Mortgage Guarantee Scheme

• Some lenders offer 5% deposit mortgages under this program.
• Even lenders outside the scheme may still offer 5% deposit products.

d. Joint Borrower, Sole Proprietor Scheme

• Allows a parent or relative to join the mortgage without being on the property title.
• Useful if your affordability alone doesn’t meet lender requirements.
• Avoids additional stamp duty since the property is in your name only.

e. Higher Income Multiples

• Some lenders now offer up to six times your income for mortgage calculations (previously 4.5x).
• This can help you borrow more even with a smaller deposit.

These options are especially valuable for first-time buyers trying to get on the property ladder.

Final Notes and Reminders

Gemma: Thank you, Ifthi, for the great advice today. And to our viewers — please remember:

• These points may not apply to everyone.
• Always speak to a broker or financial advisor before proceeding.
• If you don’t have a broker, WIS is happy to help — our contact details are below.

Important Reminder: A mortgage is secured against your home or property. It may be repossessed if you do not keep up with repayments.

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