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What sources of mortgage deposit are acceptable?

Whenever you seek to buy a property or obtain a mortgage on a property, you will more than likely to be asked what the source of your deposit money is. This is to ensure that the money has not been come by from any illegal source such as money laundering as per anti-money laundering regulations. Therefore, the chances of the success of your application will also depend on the source of your deposit. There are some lenders who may accept one source of money whilst other lenders may reject this. The following table describes the most commonly accepted sources of deposit by the lenders in the UK.

Acceptable sources of deposit for mortgages

Personal Savings and Investment

This is one of the most preferred sources of deposit for every lender. However, you will be required to provide evidence of the same.

Gifts from family members and close relatives and, in certain cases, family friends may be acceptable. However, gifts from a third party may not be acceptable.


A deposit gained by means of inheritance is usually accepted without any issue.

Property Sale

Acceptable unless other parties have a charge on the property.
Asset Sale

Sale proceeds from items legally sold and from legitimate sources can be used as deposit without any issue.

Personal Loan / Credit Card Borrowing
Most lenders will not accept money raised in this way as a deposit. However, a few lenders may be willing to consider this source.

Bridge Financing

Can be accepted by lenders although please note that the rate of interest is very high on such loans.

May be accepted by some lenders. However, if you gamble regularly, this may lead to income and affordability issues as lenders may deduct gambling income from actual income.
Overseas Deposit

Most lenders will reject an overseas deposit because of fears of money laundering. However, if the source is legitimate and verifiable, some lenders may accept this as a valid source.

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